Taxi Fare and Tariff review 2016

Closed 21 Dec 2015

Opened 27 Oct 2015

Results updated 18 Mar 2016

Between 26 October 2015 to 21 December 2015, we consulted on proposals to change the fares and tariffs for taxis (black cabs). The consultation was designed to obtain feedback on the range of taxi tariffs and fare options, and to help us understand opinion on current tariffs and fares to inform the annual review of taxi fares.

We received 418 responses to the consultation. Thank you for taking part. The responses received to this consultation are used to inform changes made to the fares and tariffs.

The following changes to taxi fares and tariffs will apply from 2 April 2016:

  • A 1.6% increase to taxi fares
  • Increase in the minimum fare from £2.40 to £2.60
  • Extension of the provision for a 40 pence additional charge for all taxi journeys, to be implemented if London retail diesel prices (as measured by the AA fuel price report) reach the threshold figure of 148.56 pence per litre
  • A new provision where all taxi fares are reduced by 40 pence if London retail diesel prices (as measured by the AA fuel price report) reached the threshold figure of 72.70 pence per litre
  • Changing the start time of Tariff Three from 06:00 to 05:00, and changing the end times of the other tariffs
  • Linking the tariff rate for longer journeys to distance only
     

A full review of the Cost Index and current fares and tariffs will also be conducted.

Our response to issues raised in this consultation will be published in early summer 2016.

For further information about the consultation and to read our interim report on the results please download the document below.

Files:

Overview

Update - 18 March 2016

Between 26 October 2015 to 21 December 2015, we consulted on proposals to change the fares and tariffs for taxis (black cabs). The consultation was designed to obtain feedback on the range of taxi tariffs and fare options, and to help us understand opinion on current tariffs and fares to inform the annual review of taxi fares.

We received 418 responses to the consultation. Thank you for taking part. The responses received to this consultation are used to inform changes made to the fares and tariffs.

The following changes to taxi fares and tariffs will apply from 2 April 2016:

  • A 1.6% increase to taxi fares
  • Increase in the minimum fare from £2.40 to £2.60
  • Extension of the provision for a 40 pence additional charge for all taxi journeys, to be implemented if London retail diesel prices (as measured by the AA fuel price report) reach the threshold figure of 148.56 pence per litre
  • A new provision where all taxi fares are reduced by 40 pence if London retail diesel prices (as measured by the AA fuel price report) reached the threshold figure of 72.70 pence per litre
  • Changing the end time of Tariff Three from 06:00 to 05:00, and changing the start times of the other tariffs
  • Linking the tariff rate for longer journeys to distance only
     

A full review of the Cost Index and current fares and tariffs will also be conducted.

Our response to issues raised in this consultation will be published in early summer 2016.

For further information about the consultation and to read our interim report on the results please download the following document:

Please click here to read further information and the interim report (PDF)

The details of the consultation can be found below.

End of update

Transport for London (TfL) licenses and regulates taxi and private hire services in London. As part of this, we set the maximum fares that taxis (black cabs) can charge. These fares are determined by tariffs that are reviewed each year and normally changed in early April, to reflect changes in a Cost Index that reflects the costs of operating a taxi in London.

Why we consulted?

We were seeking views on changes to taxi fares and tariffs in London, to take place in April 2016.

Previous tariff reviews have followed three basic principles:

  • Using the taxi Cost Index to guide the increase in average taxi fares;
  • Maintaining reasonable differentials between the day, evening/weekend and late night tariffs; and
  • Maintaining a reasonable progression of fare with journey length.
     

The previous taxi fares and tariff review resulted in a proposed decrease of average taxi fares by 0.1 per cent. However, as this change was so small, it was decided that we would freeze taxi fares and the 0.1 per cent decrease would be deferred until April 2016. This was decided to save all taxi vehicle licensees the time and costs of having to physically update their taximeters for such a small change. We are now seeking views on the following proposals:

  • Continuing to use the Cost Index and the three basic principles to set taxi fares and tariffs in London. Using the best information currently available, and taking into account the 0.1 per cent decrease from 2015, this would mean an increase to average taxi fares of 0.8 per cent.
  • Continuing the present arrangement that allows taxi drivers to add an extra charge of 40 pence if fuel prices increase significantly
  • Introducing a provision that fares should be reduced if fuel prices decrease significantly, as agreed last year
  • Changing the current minimum taxi fare (currently £2.40)
  • Changing the times when tariff three applies (currently 22:00 to 06:00)
  • Changing the arrangement when the tariff rate for longer journeys starts from being linked to the fare to being linked to the distance travelled
  • Any other views and/or suggestions of changes to the current tariff that would benefit drivers and passengers
     

We were also seeking your views on the following items:

  • The current Cost Index elements and if these are still appropriate, or if changes are required
  • Fixed fare and capped fare schemes
     

Please click here to read further details about these proposals

Please click here for additional information

Please click here to download a composite PDF of all the information
 

Areas

  • All Areas

Audiences

  • Public
  • Stakeholders
  • Local residents
  • Local businesses
  • Schools
  • London Boroughs
  • Coach Operators
  • Taxi trade
  • Transport for London
  • Taxi customers and other stakeholders

Interests

  • Taxis