Press Release

New taxi fares announced by Transport for London

13 February 2006

Taxi fares are set to rise by 3.7 per cent in order to help drivers cover increased costs of running a cab, Transport for London announced today. The new fares will begin on Saturday 1 April.

The fare prices, approved by the Transport for London Board on 8 February following consultation with the taxi trade by the Public Carriage Office, take into account increases in taxi operating costs and increases in national average earnings including an 11 per cent increase in fuel costs. They are designed to support the industry by maintaining income levels.

The new fares include:

• an increase of 3.7 per cent in average fares across all times of the day to cover increases in operating costs;
• an increase in the Christmas and New Year supplement up from £3 to £4 (last increased in 1999) which is designed to encourage more drivers to work over this busy period; and
• an increase in the Heathrow supplement up from £1 to £2 to cover some of the cost of an increased levy imposed by airport authorities on drivers.

Mayor of London Ken Livingstone said: “These new taxi fare levels take into account the growing the costs of running a black cab. Cab drivers are self-employed meaning they earn less if operating costs increase.

“I believe the fare increases strike the right balance between maintaining income levels for drivers whilst ensuring passengers still get a fair deal for a high quality and unique service.”