London Black Cab Taxi Fare Rise: The Arguments For And Against
Taking a London Black Cab will become more expensivefrom April after Transport for London’s finance committee approved a rise for most tariffs by 5.05% and an increase to the minimum fare by 40p.
Set to be introduced next month, the increase reflects efforts by TfL to alleviate the pressure on Hackney Carriage drivers, who have faced a steady increase in vehicle and insurance costs in recent years.
As part of the changes, there will be:
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An increase in the minimum fare by 40p from £3.80 to £4.20
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A 5.05% increase for Tariffs 1, 2 and 3
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The retention of Tariff 4 rates at the same rate as Tariff 2
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Reduction of Heathrow extra, which taxi drivers can add to the fare when picking up a passenger from a Heathrow taxi rank, from £2.00 to £1.60
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Raising the Heathrow drop-off charge from £5.20 to £6.00
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Increase in the fixed-fares for shared taxis from the All England Lawn Tennis Club to central London by £1.50
The changes to fares reflect a sustained rise in the Cost Index, which calculates and demonstrates the costs associated with the taxi driving profession in London, such as vehicle servicing, running costs and driving fees.
The Cost Index is intended to take the individual challenges of the taxi driver into account alongside a need to balance fair values of tariffs for the user.
For 2024/25, the total Cost Index figure grew by +7.48%, marking the fourth consecutive year that this has increased after a marginal decrease during the COVID-impacted period of 2020/21.
In Support Of The Black Cab Fare Increase
Organisations representing taxi drivers – including the Licenced Taxi Drivers’ Association (LTDA), the Taxi Trade Tariff Group (TTTG), Unite the Union and the United Cabbies Group (UCG) have put their backing behind the fare increase.
The groups argue that the 7.48% increase – as stipulated in the Cost Index – is an accurate reflection ofthe rise in fares necessary to sustain driver incomes and stem what has been a steady decline in actively employed black cab drivers.
Introducing a lower increase than this would fall short of alleviating the growing pressure on drivers financially to earn money and maintain vehicles, according to the groups.
They also highlighted how the daily challenge of congestion in the UK’s capital city and low traffic neighbourhoods (LTNs) – where physical restrictions have been introduced to stop the use of shortcuts via built up residential areas –have had the knock-on effect of raising fares.
Major booking platform FREENOW is also advocating for the rise, claiming it is needed to ensure drivers are retained and service levels are maintained. It has also proposed stricter charges, such as higher penalties for cancellations and for soiling.
The support from taxi groups come despite fears such a move will drive customers towards using ride-sharing apps instead. However, while such apps have proved to bea cost-effectiveway for Londoners to take a taxi, they are subject to faresthat increase and decrease depending on the demand for taxis in the area.
Arguing Against The Black Cab Fare Increase
At the heart of the argument against the Black Cab fare increases are concerns its impact will be felt most keenly among the more vulnerable in the community.
Disability advocacy groups, including Hackey Disability BackUp and Transport for All (TfA) have expressed worries that the fare rises affect those who rely primarily on these particular taxis to get around, which could in turn worsen social isolation and restrict access to essential services.
London TravelWatch has also highlighted that more vulnerable passengers – particularly at night – could be priced out of taking a taxi to ensure their safety. It proposed a limit to the increases to Tariff 3, which applies to fares during night-time hours.
Both sides of the argument, however, agree as to the importance of maintaining and promoting theTaxicard, which offers a subsidised service of Black Taxis for those who might find it difficult or impossible to access other modes of transport.
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