
Transport for London (TfL) has confirmed a wave of price increases that will force taxi and private hire drivers to pay significantly more for their licences and tests.
These changes come as motorists across the country already struggle with a high cost of living.
Starting March 9, 2026, the cost for the famous "Knowledge of London" assessment rose to £225, while the appearance fee climbed to £425, up from £200 and £400 respectively.
Drivers are also paying more for safety and regulatory tests, with resit fees nearly doubling from £16 to £30. Private hire drivers face similar increases for English language and topographical skills assessments.
The financial pressure will intensify on June 1, 2026, when taxi driver licence prices will rise from £120 to £138, while the taxi vehicle licence application fee will increase to £70 from £66 and the grant of licence fee to £50 from £44.
The PHV driver licence application fee will jump to £138 from £124; PHV driver grant of licence fee rises to £205 from £186; PHV licence application fee and grant of licence fee remain at £84 and £56 respectively.
These updates mark the first changes to licensing fees since 2017 and follow a formal review of industry fares.
This price hike arrives during a period of frustration for London drivers. A massive backlog in licensing has left hundreds of motorists waiting for permission to work.
Elly Baker AM, chair of the London Assembly Transport Committee, criticised TfL for the delays, noting they have caused a "breakdown of trust" between the regulator and the industry.
"These delays are having a serious impact on driver wellbeing - preventing them from being able to work, earn money, and support their loved ones," Baker said.
Passengers will also feel the pinch starting April 25, 2026.
The minimum taxi fare will increase from £4.20 to £4.40, and tariffs 1,2and 3 will rise by nearly 3 per cent. Tariff 4 rates will be the same as the new Tariff 2 rates, with these applying for journeys over six miles at all times.
Additionally, a new £6 drop-off charge will be introduced for London City Airport, though drivers are instructed that Blue Badge holders "must not" be charged this extra fee.
While drivers must pay more to stay on the road, TfL confirmed there will be no change to the fee for using the airport’s taxi rank.

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