TfL Raises Licensing Fees and Taxi Fares Across London

Transport for London has confirmed a wave of fee increases affecting taxi and private hire vehicle (PHV) drivers across the capital. The changes, which cover licensing, testing, and minimum fares, have been introduced in phases throughout 2026.

From 9 March 2026, drivers began paying more for several key assessments. The Knowledge of London assessment fee increased to £225, while the appearance fee rose to £425. The Safety, Equality and Regulatory Understanding (SERU) test now costs £40, and resit fees have nearly doubled to £30. Private hire drivers face the same £40 fee for their topographical skills test, English language assessment, and SERU test.

Licensing costs are also going up. From 1 June 2026, taxi and private hire driver licence application fees have increased to £138, and vehicle licence application fees to £205. TfL confirmed these are the first licence fee increases since 2017, introduced following a formal review into fares and licensing costs.

On top of this, minimum taxi fares rose from 25 April 2026, increasing by 20p to £4.40. A 2.88 per cent rise now applies across all standard tariffs, covering daytime, evening, weekend, and late-night journeys. A new £6 drop-off charge has also been introduced at London City Airport, which drivers may add to the metered fare.

The timing of these increases has not gone unnoticed. London’s taxi and PHV industry has been dealing with a significant licensing backlog at TfL, which at its peak left hundreds of drivers unable to work while waiting to be re-licensed. The London Assembly Transport Committee raised urgent concerns about the impact on driver income and wellbeing. While TfL’s fee review signals a longer-term effort to bring costs in line, many drivers are now facing higher overheads at an already difficult time.

Source: https://www.gbnews.com/lifestyle/cars/london-drivers-new-costs-licence-test-taxi