If you live in London or visit regularly and use taxis (black cabs) to get around, including as a Taxicard member, Transport for London (TfL) would like to hear from you about proposed taxi fare changes.
TfL reviews taxi fares and tariffs every year and tries to strike an appropriate balance between drivers being fairly paid and customers getting good value fares.
This year, TfL is asking for feedback on options for changes to the minimum fare charged for taxi journeys, options for changes to taxi tariffs (charges for journeys made at different times of day), and changes to the additional charges for journeys made to and from Heathrow Airport.
Scroll down for accessible formats of the proposals and consultation.
Why is TfL proposing taxi fare changes?
Transport for London (TfL) regularly reviews taxi (black cab) fares and typically makes adjustments once a year following a public consultation. Taxis play an important role in London’s transport services, providing an accessible option for individuals who may find public transport challenging and offering an alternative to private car use, which can help reduce congestion and improve air quality.
TfL aims to ensure that taxi drivers can cover their operating costs and are compensated fairly for their work, helping to make taxi driving an attractive career choice.
The number of licensed taxi drivers has been declining for several years, making it essential to balance fair compensation for drivers with fare affordability for the public.
When reviewing fares and tariffs, TfL uses the Cost Index, which reflects changes in taxi drivers’ operating costs and national average earnings.
This year, taxi drivers’ operating costs have risen by 4.17%, while average national earnings have increased by 3.31%.
TfL strives to balance fair compensation for drivers with fair and affordable fares for taxi customers.
Proposed changes to taxi fares and tariffs
Taxi fares are calculated using different tariffs, with three tariffs applied to shorter journeys of six miles or less. Tariff 1 applies to journeys made during weekday daytimes (Monday to Friday), Tariff 2 applies to weekday evenings and daytime journeys on Saturdays and Sundays, and Tariff 3 applies to nighttime journeys and trips on public holidays.
Tariff 4 applies to any portion of a journey that exceeds six miles. Under all proposed options, Tariff 4 would be adjusted to match the rate of Tariff 2.
The current tariff rates are available on the TfL website.
There is a minimum fare, which is currently set at £3.80. TfL is considering changes to both the minimum fare and Tariffs 1, 2, and 3 and welcomes public feedback on these potential adjustments.
Minimum fare
TfL would like to know if you think it should:
- Freeze the minimum fare at £3.80
- Increase the minimum fare by 20 pence to £4.00
- Increase the minimum fare by 40 pence to £4.2
Tariffs 1, 2 and 3
TfL is considering seven options for Tariffs 1, 2 and 3 and would like to hear your views on what it should do. If fares should go up, do you think it should base the increase on the full Cost Index figure of 7.48% or the driver costs component of the Cost Index figure of 4.17% instead, or even that it should keep the fares as they are?
Find out more about the Cost Index.
In all these options, Tariff 4 would be increased to be the same as Tariff 2.
Please click on options for further details.
Heathrow Airport
Heathrow extras
Taxi drivers have to pay a fee to enter the taxi ‘feeder park’ at Heathrow Airport before they can proceed to one of the taxi ranks at the Heathrow terminals. Drivers can add a ‘Heathrow Extra’ to the fare to help them cover this additional cost. Usually, the ‘Heathrow Extra’ will cover around half of the full cost of accessing the taxi feeder park.
Heathrow Airport can decide to increase or decrease the fee it charges taxi drivers to access the feeder park.
The Airport has reduced the amount drivers pay from £3.60 – the cost in 2023 – to £3.00.
TfL is accordingly proposing to reduce the Heathrow Extra from £2.00 to £1.60 and would like to know what you think about this.
Heathrow terminals drop off charges (TDOC)
Since 2021, Heathrow Airport has charged drivers, including taxi drivers, a fee when they are dropping off passengers at one of the airport terminal forecourts. TfL has accordingly allowed drivers to add a charge to fares and pass on this cost to their customers.
The TDOC is currently £5.00, and Heathrow Airport has advised that it intends to increase this to £6.00 from January 2025. Taxi drivers can currently add up to £5.20 to their customers’ fares.
TfL would like to know your views on whether it should:
- Increase the amount drivers can add to fares when dropping off at the airport from £5.20 to £6.00
- Decrease the amount drivers can add to fares when dropping off at the airport to less than £5.20
- Freeze the amount at £5.20
- Remove the additional charge altogether
Taxicards
The Taxicard scheme provides subsidised journeys, usually by black cab, for Londoners who are mobility or visually impaired. The scheme is managed by TfL and the London boroughs. Taxicard members contribute towards the cost of their journey and the rest – up to a maximum fare – is subsidised. Members are allowed a fixed number of journeys on their Taxicard per year.
If you are a Taxicard member, the proposals may affect you as taxi fares could increase. This may mean you can use your Taxicard for fewer journeys.
TfL has assessed the potential impact of its proposals in its Impact Assessment and Equalities Impact Assessment (EqIA) document.
In summary:
Increasing taxi tariffs or minimum fares
- Increasing the minimum fare and/or tariffs could impact negatively on Taxicard members as this would increase fares. This could mean that Taxicard members would not be able to travel as far before the capped fare is reached.
- This could mean that the capped fare would need to be increased or that Taxicard members would not be able to make as many subsidised journeys. It may also lead to less availability of taxis for Taxicard journeys.
- However, increasing fares could have positive aspects for Taxicard users if this ensures that more drivers continue to work and more people want to be taxi drivers, as it could increase the number of taxis available, including for Taxicard members
No change to taxi tariffs or minimum fares
- Freezing the minimum fare and tariffs could be positive for Taxicard members, as it means fares would not increase and they would have the same number of Taxicard journeys available for them to use
- However, this could also be negative for Taxicard members as taxi drivers may choose to do jobs other than Taxicard journeys, as they only receive 90% of the Taxicard fare. This could result in fewer taxis being available for Taxicard members, with longer waits for an available taxi.
- Not increasing fares when taxi drivers’ operating costs and average national earnings have increased could result in taxi drivers choosing to leave the trade and fewer people becoming taxi drivers, leading to a decrease overall in taxis being available, including for Taxicard members.
Accessible formats of the taxi fare proposals and consultation
TfL wants to make sure everyone can take part in the consultations. To help make it accessible to everyone, TfL has provided:
TfL also offers a BSL conversation service. This allows the TfL consultation lead to have a two-way BSL translated discussion with a BSL user. To request a BSL conversation, please contact TfL at haveyoursay@tfl.gov.uk and somebody will be in contact to arrange a convenient time.
Have your say on the proposed taxi fare changes
TfL is keen to hear from taxi drivers and customers, including Taxicard members.
You can have your say by completing the survey, which should take no more than 10 minutes to complete, or if you are short on time, you can submit a quick response.
If you prefer, you can also share your comments by:
- Email: haveyoursay@tfl.gov.uk
- Telephone: 020 3054 6037 to leave your name and contact number, and somebody will call you back. Please quote ‘Taxi fares 2024’ when leaving your message
- Write to FREEPOST TFL HAVE YOUR SAY (Taxi fares 2024) no postage stamp is required
Please note responses to the survey may be made publicly available after the consultation has closed. This would typically be in the form of a report on the results of the consultation exercise, but any personal information will be kept confidential. Your personal information will be properly safeguarded and processed in accordance with the requirements of privacy and data protection legislation.
This consultation closes on 2nd December 2024. Transport for London will use the feedback from the consultation to develop its recommendations for any changes to taxi (black cab) fares for the TfL Finance Committee. The committee will consider TfL’s recommendations and decide at its meeting on 26th February 2025. Any changes will then be implemented in April 2025.
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