Black taxi fares could rise by up to 7.5 per cent next year under proposals from Transport for London.
TfL, which regulates licensed taxis and reviews cab fares annually, has proposed seven options, ranging from a fares freeze to a 4.2 per cent rise or a 7.5 per cent hike.
The options also involve either freezing the minimum fare at £3.80 or increasing it to £4 or £4.20.
The amount that drivers can charge for a drop-off at a Heathrow airport terminal could rise from £5.20 to £6.
If approved, any increase would come into effect in April 2025 and would follow a 7.6 per cent rise in 2023 and an 8.9 per cent rise in April 2024.
The six-week consultation runs until December 2.
A 4.2 per cent rise would equate to the rising cost of running a cab, while a 7.5 per cent increase would also include inflation – effectively meaning that cabbies’ earnings keep pace with other professions.
TfL tries to balance the need to attract and retain drivers with the requirement not to price Londoners out of taxis, which it regards as an alternative to private cars and an accessible form of transport, including for wheelchair users.
The number of licensed taxi drivers in London has fallen to 17,000 – more than 500 fewer than in February, which was the lowest number since the 1980s.
At the same time, there are more than 100,000 minicab drivers - often working for ride-hail apps such as Uber or Freenow.
TfL’s consultation states: “We want to ensure that taxi drivers are able to cover their operating costs and are paid fairly for their work. This helps ensure that being a taxi driver remains an attractive career option.
“The number of licensed taxi drivers has been falling for several years. So it’s important to try and find a balance between taxi drivers being able to cover their costs and be paid fairly, and the public not using taxis as the fares are too expensive.
“We try to strike a balance between drivers being fairly paid and taxi customers being charged a fair and affordable fare.”
A spokeswoman for London TravelWatch, the capital’s passenger watchdog, said: “Taxi journeys play an important part in London’s public transport network. They allow people to travel at times and between locations that may not be well served by other types of transport, and most importantly can provide door to door accessible transport for people who might not be able to use other types of transport.
“However, it is important to strike a balance between taxi drivers being fairly paid and people who use taxis getting fair and affordable fares.
“Fare increases are also likely to disproportionately disadvantage people who rely on taxis for accessibility or safety reasons, and so mitigations should be put in place to reduce the impact on these groups.”
Taxi fares are calculated using different tariffs. There are three tariffs covering shorter journeys – those of six miles or less.
Tariff 1 covers journeys made during Monday to Friday day times, Tariff 2 covers journeys made during weekday evenings and the daytime on Saturday and Sunday, and Tariff 3 covers journeys made at night time and on public holidays.
Tariff 4 covers any part of a journey over six miles. In all the options that are being consulted on, Tariff 4 would be amended to be the same as Tariff 2.
