Below-inflation increase maintains balance between keeping taxi fares affordable and helping drivers meet rising costs.

Taxi passengers are reminded that fares will increase on Friday 2 April. 

The below-inflation increase, of 2.7 per cent, was approved by the Transport for London (TfL) Board in February.

The fare increase aims to provide a balance between maintaining income for drivers, who face disproportionately high work-related costs compared to other Londoners, while ensuring passengers still get a fair price for the high quality and unique service provided by the Capital's taxi drivers.

Taxi fares are reviewed annually and calculated by TfL based on a cost index that has been used since 1981. 

The process included consultation by TfL with the taxi trade and others, including London TravelWatch and the London Chamber of Commerce and Industry.

The 2.7 per cent fare increase for the next financial year takes into account a number of factors including a 12 per cent increase in fuel costs and a two per cent increase in average national earnings.

Notes to editors:

  • TfL's Taxi and Private Hire is responsible for licensing and regulating London's taxi and private hire services
  • Taxi fares are calculated according to one of three tariffs. These are:
    • Tariff 1: Monday to Friday, between 06:00 and 20:00
    • Tariff 2: Monday to Friday, between 20:00 and 22:00, and weekends between 06:00 and 22:00
    • Tariff 3: Nightly between 22:00 and 06:00 and on public holidays

Tarff changes - 2.7 per cent average fare increase

 Current average (£)    New average (£)  Increase (£)  Increase (per cent)
 Tariff 1  10.39  10.67  0.28  2.7
 Tariff 2  12.05  12.37  0.32   2.7
 Tariff 3  14.15  14.54  0.39  2.7

 All week

 11.48  11.79  0.31  2.7