A compensation scheme announced by Transport for London (TfL) for taxi and private-hire vehicle (PHV) drivers affected by licensing delays has been criticised by a trade union, which says the payments fall far short of the losses suffered by drivers, according to BBC News.
TfL has apologised after problems linked to the rollout of new licensing software caused renewals for hundreds of drivers to be delayed. As a result, some drivers — including those working via ride-hailing platforms — were unable to work and left without income.
Under the scheme, eligible drivers will receive a one-off “goodwill payment” of between £300 and £500, depending on their circumstances.
What TfL is offering
TfL said the majority of drivers were not affected because licences are renewed on a three-year cycle, but accepted that those who had to renew during the affected period experienced disruption.
The payments are set out as follows:
- Taxi drivers: £300
- PHV drivers: £310, reflecting a refund of application and licence grant fees
- Drivers without a licence for more than seven days: enhanced payment of £500
A TfL spokesperson said:
“We’re sorry that some drivers who attempted to renew their licences last year experienced disruption and delays.
To recognise the impact, we are introducing a one-off goodwill payment scheme for those who meet the criteria.”
TfL confirmed that eligible drivers will be contacted directly and payments will be issued by cheque, with no application required.
Unions divided on response
The GMB, which represents taxi and private-hire drivers, welcomed the scheme. A union organiser said the payments would “go some way” towards addressing the financial impact of the delays and thanked TfL for working constructively on the issue.
However, the App Drivers and Couriers Union (ADCU) said the compensation was “nowhere near enough”. The union said some members had waited months for their licences to be renewed, with reports of vehicle repossessions and homelessness.
The ADCU said it would push for £500 for every week a driver had to wait, adding that for some drivers even that would not fully compensate for what they experienced.
‘This is our livelihood’
BBC News previously highlighted individual cases linked to the delays. One driver said he became homeless after being unable to work when his PHV licence was not renewed, falling behind on rent payments as a result.
Drivers affected by the delays have repeatedly said that even short interruptions to licensing can have severe consequences, as they are legally barred from working until renewals are completed.
See the orginal article on the BBC News website.
DM News Commentary
This story underlines a key issue in the taxi and PHV trade: no badge means no income. When licensing systems fail, drivers are instantly locked out of work — with bills, rent, finance agreements and insurance costs still ticking over.
While TfL’s goodwill payments may help some drivers in the short term, many will feel that £300–£500 barely scratches the surface after weeks or months off the road, particularly in London where operating and living costs are high.
It also raises an uncomfortable question for regulators nationwide: if drivers are legally required to stop working due to administrative failures, should compensation be automatically linked to time lost, rather than capped at a flat rate?
For many in the trade, this episode will reinforce the need for robust, reliable licensing systems — because the human cost of delays is clearly far greater than the figures on paper.
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