Thousands of drivers face huge new costs for licences and tests with fresh price hike

Transport for London has confirmed that taxi and private hire drivers, as well as customers, will face huge price hikes in the coming months. As motorists up and down the country struggle to deal with the rising cost of living, new measures have been introduced, while others will be launched soon. As of March 9, 2026, drivers will have to pay £225 for the Knowledge of London assessment fee and £425 for the appearance fee, up from £200 and £400 respectively. Taxi drivers will also see costs rise from £36 to £40 for the safety, equality and regulatory understanding (SERU) test, while a resit will jump from £16 to £30. TRENDING Stories Videos Your Say Similar price hikes are now in effect for private hire vehicle owners, including a £40 fee for the topographical skills test, English language speaking and listening test and SERU assessment. Major licensing changes will also be made, including charging drivers more to get their hands on a licence application. From June 1, 2026, taxi driver licence prices will rise from £120 to £138, while vehicle licence applications will soar to £205. The same prices will apply to private hire vehicle drivers and vehicles, according to new documents released by Transport for London. These fees represent the first change to licence fees since 2017, and have been introduced following a review into fares. It comes amid a licence backlog felt by taxi drivers in London, which has prompted urgent calls for action from the London Assembly Transport Committee. At its peak, hundreds of drivers were waiting to be re-licensed, while 1,000 cases were pending because TfL needed more information from the motorist. TfL was on the receiving end of criticism from Elly Baker AM, chair of the London Assembly Transport Committee, who warned the situation was having a huge effect on motorists. LATEST DEVELOPMENTS Chinese cars join Motability scheme as Rachel Reeves axes 'high-end' vehicles from offering UK's largest car park operator set to 'enter administration' with 1,000 jobs at NCP at risk Vauxhall unveils new Astra with 'unique' offer including £500 for drivers switching to electric She added: "Delays to issuing private hire licences have caused a breakdown of trust in TfL, and efforts need to be made to rebuild that trust - particularly with private hire drivers and their Trade Unions. "These delays are having a serious impact on driver wellbeing - preventing them from being able to work, earn money, and support their loved ones." Transport for London has also confirmed new minimum fares from Saturday, April 25, 2026, with fares increasing by 20p from £4.20 to £4.40. A 2.88 per cent hike will apply to tariffs 1 (Monday-Friday 5am-8pm), 2 (Monday-Friday 8pm-10pm, and Weekends 5am -10pm) and 3 (every night 10pm-5am, and public holidays). Tariff 4 rates will be the same as the new Tariff 2 rates, with these applying for journeys over six miles at all times. A new London City Airport drop-off charge will be introduced at a price of £6, which the driver will be able to add to the metered fare. Any Blue Badge holders who have an exemption from London City Airport "must not" be charged the additional cost. TfL confirmed that there would not be any changes to the fee paid by taxi drivers when using the airport taxi rank. Our Standards: The GB News Editorial Charter