Black cab taxi fares to rise by more than double inflation to stop cabbies quitting

Black taxi fares are to rise by more than double the rate of inflation from next month in the latest attempt to prevent cabbies quitting the trade.

Fares will rise by an average of 8.9 per cent, at a time the CPI rate of inflation is four per cent. Mayor Sadiq Khan has frozen pay-as-you-go Tube and bus fares until next March to ease the cost of living crisis.

However, the number of licensed taxi drivers in London has fallen by 21 per cent since the start of the pandemic to 17,572 last month – the lowest number since 1980.

The number of black taxis in the capital has risen slightly in recent years to 14,750 but there are about 8,000 fewer than a decade ago – at a time there are more than 92,000 minicabs competing for business.

Under the changes, which Transport for London’s finance committee is expected to rubber stamp next week, the minimum fare would remain at £3.80 but a one-mile weekday journey would rise from about £6.80 to about £7.20, while a three-mile weekday evening journey would increase from about £15.80 to £17.20.

TfL reviews taxi fares annually in a bid to maintain cab drivers’ income, while not putting them out of reach of Londoners. Fares rose last April by an average of 7.6 per cent.

Passengers pay fares based on a series of tariffs, which vary according to whether the journey is on a weekday, in the evening, at the weekend or at night.

TfL consulted on freezing the fares or increasing them by either 3.7 per cent, 5.2 per cent or 8.9 per cent.

Of the 1,487 responses, from passengers, campaign groups and taxi drivers, more than 52 per cent put the 8.9 per cent increase as their first option – including 72 per cent of drivers.

TfL said taxi drivers’ operating costs had increased by 5.2 per cent, in part due to vehicle costs, insurance and the cost of electric charging. At the same time, average national earnings have increased by 3.7 per cent.

Last year’s increase was seen as a “pay freeze” by cabbies as it did not include an increase matching average national earnings.

TfL said: “It is important that taxi drivers are fairly paid to try to ensure that taxi driving remains a viable career, licensed taxi drivers do not stop being a taxi driver and people will consider applying to become a licensed taxi driver.”

It said the number of applications to become a cabbie and learn “The Knowledge” – committing thousands of routes within six miles of Charing Cross to memory - increased last year but was “significantly lower” than in the years up to 2015.

“If the number of licensed taxi drivers falls, then this could affect the supply of taxis and increase the risk that taxi users are unable to get a taxi or have to wait longer for a taxi,” TfL said.

“There could be an increased risk to the safety of some people if taxi wait times increase or they are unable to get a taxi.”

London TravelWatch, the passenger watchdog, said the fares increase could mitigate the risk of drivers leaving the trade abut warned disabled Londoners or people trying to get home safely at night could be “disproportionately disadvantaged”.

The Taxi Trade Tariff Group, which represents the Licensed Taxi Drivers’ Association, London Cab Drivers Club, RMT, United Cabbies Group and Unite, said in a joint response to the consultation that the 8.9 per cent increase was the “only fair and reasonable option”.

TfL is also changing the tariff for journeys of more than six miles, making daytime journeys more expensive but long journeys at night cheaper.

The Heathrow premium of £3.60 that drivers can charge airport passengers on top of the cost of their journey will be reduced to £2.

A TfL spokesperson said: “Taxis play an important role getting people around the capital, in particular those with accessibility issues.

When considering changes to taxi fares, we always try to strike a balance between taxi drivers being fairly paid and taxi passengers getting fair and affordable fares.”

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