2021 Review of taxi (black cab) fares and tariffs in London

Consultation has concluded

Update 23 March 2022

On 9 March 2022, TfL's Finance Committee approved our recommendations.

You can see the findings of the consultation in our report as well as our response to the issues that were raised during the consultation. 

Update 1 March 2022

We have now considered all the consultation responses and used these to inform our recommendations to the TfL Finance Committee.

The Finance Committee will consider the recommendations at its meeting on 09 March 2022.

Following this, we will publish the consultation report. This will detail the decisions the Finance Committee has taken, as well as responding

Update 23 March 2022

On 9 March 2022, TfL's Finance Committee approved our recommendations.

You can see the findings of the consultation in our report as well as our response to the issues that were raised during the consultation. 

Update 1 March 2022

We have now considered all the consultation responses and used these to inform our recommendations to the TfL Finance Committee.

The Finance Committee will consider the recommendations at its meeting on 09 March 2022.

Following this, we will publish the consultation report. This will detail the decisions the Finance Committee has taken, as well as responding to the key issues raised during the consultation.

 We will aim to publish this by late March 2022.


We are reviewing London taxi (black cab) fares and tariffs. We are interested in your views on the current taxi fares and tariffs, and whether these should be increased to take into account increases to taxi drivers’ operating costs.

Why do we review fares?

We review taxi fares and tariffs because:

  • Taxi drivers’ operating costs change
  • We want to ensure that drivers are fairly paid and can cover their costs while making sure taxi driving remains a viable career
  • It is important to ensure taxi fares remain value for money for taxi users

What do we want to know?

The coronavirus pandemic has brought uncertainties for the taxi industry and for taxi users. So for this review, we are not consulting on a single proposal for increasing taxi fares and tariffs. Instead we are interested in your views on three possible options:

OptionDetail
Option 1No change to taxi fares and tariffs:
• Minimum fare frozen at £3.20
• Tariffs 1, 2 and 3 frozen

Option 2Increasing Tariffs 1, 2 and 3 by the combined total of the 2019, 2020 and 2021 Cost Index figures:
• Minimum fare frozen at £3.20
• Increasing Tariffs 1, 2 and 3 by 9.95%

Option 3Following a similar approach to that taken in the last two reviews:
• Increasing the minimum fare by 80 pence
• Increasing Tariff 1 and Tariff 2 by 4.03%
• Freezing Tariff 3


See how each option would affect the rates per mile, per hour and per minute under each tariff.

We would also like to know if you think:

Whether there should be any change to the extra charge passengers pay to take a taxi from one of the taxi ranks at Heathrow Airport (this charge helps to cover the fees taxi drivers have to pay to use the taxi ranks at the airport).

Whether taxi drivers should be allowed to add an extra charge to the fare paid by passengers when they are dropped off at Heathrow Airport (this would help drivers cover the costs of a new terminal drop off charge introduced at the airport).

 How can you find out more?

The full details of the options we are consulting on, and the other options we have considered but decided not to take forward, can be found in the Documents section.

When considering changes to taxi fares and tariffs we try to strike a balance between drivers being fairly paid and taxi users getting fair and affordable fares. Further information on the factors we have considered can be found in the factsheets in the Documents section.

We have undertaken an Equality Impact Assessment (EqIA). The EqIA examines what positive and negative impacts changes to taxi fares and tariffs may have on customers with characteristics protected by the Equality Act 2010.

We’ve also considered other impacts including economic, health and safety (including crime and disorder), and environmental impacts. For this review we will also consider the impact of the coronavirus pandemic on the taxi trade and the current situation.

What’s next?

Once the consultation ends on 21 January 2022, we will spend time considering all the responses we received and this will inform our recommendations for any changes to taxi fares and tariffs.

TfL’s Finance Committee is authorised to approve proposed changes to fares for taxis. Once the Finance Committee have reached a decision, we will publish the outcome, consultation report and the response to the issues raised during the consultation.

If we decide to make any changes, these would normally be implemented between six to eight weeks after being approved by the Finance Committee. This is to allow time for the taximeters and fares information to be updated.

Have your say

Please share your views by taking part in our online survey. It should take you no more than 10 minutes to complete.

To take part you will need to register with your email address. Your details will be kept secure and only used, with your permission, to update you about the outcome of the consultation and our next steps.

If you prefer not to complete the survey, then please submit your response to by:

We want this consultation to be accessible to everyone. Please find an Easy Read version of an executive summary of the proposals and an Easy Read version of our survey . These are also available as a  British Sign Language (BSL) video of the executive summary and a BSL video of the survey, both videos include audio.

If you need to translate this page into another language, please use the ‘Select language’ button in the bottom-left hand corner of this page.

Consultation has concluded

Please let us know if you have any questions that will help you respond to the consultation. We will then get back to you. Note this tool is not for responding to the consultation, please do that via the survey. 

Any questions you ask may be visible to others and will be subject to moderation. Any personal information will be kept confidential but your user name will be displayed. Further details on moderation are available here

Questions asked may be publicly available after the consultation has closed and we may also include them 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. For further information, please visit our privacy policy

  • I was overcharged by black cab. How do I raise a claim?

    MANSOURALSUGOUR asked 11 months ago

    Thank you for your question.

    Complaints about overcharging or other issues with taxi (black cab) services in London can be submitted to us using the form on our website: tfl.gov.uk/help-and-contact/contact-us-about-taxi-and-private-hire


  • Is it the intention of TFL to keep taxi fares low so we can compete on a even playing field with private hire or will you hike our fares up with the excuse that we have got to keep up with inflation and cost of living so become uncompetitive.

    east17 asked 12 months ago

    Thank you for your question.

    When reviewing taxi fares and tariffs we take into consideration a number of different factors including:

    • Responses to the consultation and the issues raised
    • The potential impacts on different groups including taxi users, taxi drivers and people who share a relevant protected characteristic 
    • What the Cost Index shows – the Cost Index tracks changes to the costs associated with being a taxi driver (e.g. vehicle costs, fuel, insurance) and changes in average national earnings. We use the Cost Index when considering options for changes to taxi fares and tariffs, rather than figures for inflation, although we do also check the relevant figures for the Consumer Prices Index (CPI) and Retail Price Index (RPI) 
    • Taxi users’ views – we conduct an annual survey and ask users what they think about London taxi fares 
    • Taxi drivers’ views – we conduct an annual survey and ask taxi drivers what they think about the minimum fare and tariff rates  
    • Feedback from the taxi trade associations 
    • Feedback from other stakeholders (e.g. London Councils) 
    • Other relevant factors – competitiveness is a factor we’ve considered more in recent years and a section on this has been included in the Other factors to consider document 

     

    For this consultation we’re seeking views on three options. The two options that involve increases to taxi fares and tariffs (options 2 and 3) have both been developed using the Cost Index figure. It is not our intention to make changes to taxi fares and tariffs with the aim of making taxis uncompetitive.  

     

    Ultimately we try to strike a balance between taxi drivers being fairly paid and taxi users getting fair and affordable fares. 


    We hope this answers your question.

    TfL Consultation Team

  • Please explain what is the difference between each of the 3 tariffs.

    avvo123 asked 12 months ago

    Thank you for your question. Please find below information on How taxi fares are calculated.

    Fares are calculated using a taximeter and the maximum fare payable is shown on the taximeter at the end of the journey.

    Taxi fares are based on:

    • The time of day
    • Distance travelled 
    • The time taken for a taxi journey
    • Plus any authorised extra charges 

    The differences between the tariffs are:

    • When they apply 
    • The rates for each tariff – Tariff 1 is the lowest (cheapest) rate, Tariff 3 is the highest (most expensive) rate


    Minimum fare, taxi tariffs and extra charges 

    For each taxi journey there is a minimum fare which is currently £3.20.

    There are four different taxi tariffs:

    Tariff

    When tariff applies

    Tariff 1 (T1)

    • Monday to Friday between 05:00-20:00

    Tariff 2 (T2)

    • Monday to Friday between 20:00-22:00
    • Saturday and Sunday between 05:00-22:00

    Tariff 3 (T3)

    • Every night between 22:00-05:00 
    • Public holidays

    Tariff 4 (T4)

    • At all times for journeys over six miles

     

    The different tariffs set the rates taxi users pay to travel a certain distance or for a certain length of time on specified days and times of day. For each of the four tariffs there are two rates:

    • Distance rate – this sets the distance that can be travelled for each 20 pence increase to the taxi fare
    • Time rate – this sets the period of time that can be travelled for each 20 pence increase to the taxi fare

    The taxi fare increases by 20 pence each time the relevant distance has been travelled or period of time has passed. Whether increases to the taxi fare are based on distance or time depends upon the speed of the taxi. If the speed drops below 10.4 miles per hour then the increase is based on time, otherwise it is based on distance travelled.  

    The current distance and time rates are shown below.


    Tariff 1

    Tariff 2

    Tariff 3

    Tariff 4

    Minimum fare 

    £3.20

    £3.20

    £3.20

    NA

    Distance unit (metres)

    113.5

    92.4

    81.2

    86.9

    Rate per mile

    £2.84

    £3.48

    £3.96

    £3.70

    Time unit (seconds)

    24.4

    19.9

    17.5

    18.7

    Rate per hour

    £29.51

    £36.18

    £41.14

    £38.50

    Taxi fare unit 

    20 pence 

    20 pence 

    20 pence 

    20 pence 

     

    As an example, if someone is travelling when Tariff 1 applies then the taxi fare will increase by 20 pence for each 113.5 metres travelled or 24.4 seconds that pass.

    There are no extra charges for luggage or additional passengers but the following extra charges can be added to the fare:

    • Up to £2.00 for phone and online bookings
    • £2.80 for journeys that start from one of the taxi ranks at Heathrow Airport
    • £4.00 for journeys made between 20:00 on 24 December and 06:00 on 27 December or between 20:00 on 31 December and 06:00 on 2 January 

    A taxi fare card is displayed in the passenger compartment of every licensed taxi and this contains information about taxi fares and the extra charges.

     We hope this answers your question.