Transport for London (TfL) has announced a “goodwill payment” aimed at compensating taxi and private hire vehicle (PHV) drivers who experienced licensing delays, but a trade union claims the amount is “far from adequate.”
TfL expressed regret over the situation, explaining that a problem with new licensing software led to delays affecting hundreds of drivers, including those operating with ride-hailing services like Uber and Bolt, preventing them from working and earning an income.
Drivers eligible for compensation can expect a one-time payment ranging from £300 to £500, depending on individual circumstances.
The App Drivers and Couriers Union (ADCU) highlighted that some of its members faced homelessness as a result, stating its intention to advocate for “£500 for each week a driver has had to wait.”
While TfL stated that most drivers were not impacted due to the three-year renewal cycle for licenses, it acknowledged that some who needed to renew during the disrupted period did face significant delays.
Eligible taxi drivers will receive £300, while PHV drivers will receive £310, corresponding to refunds of their application and license grant fees. Additionally, drivers who were without a license for over seven days will be entitled to an increased payment of £500.
A spokesperson for TfL remarked, “We apologize for the disruption and delays faced by some drivers attempting to renew their licenses last year. To acknowledge the impact of these challenges, we are launching a one-off goodwill payment initiative for those who qualify.”
The affected drivers will not need to submit applications; they will be contacted directly and compensated via cheque.
The GMB union, claiming to represent the largest number of taxi and private-hire drivers, expressed support for the initiative. Union organizer Steve Garelick mentioned that the payments “will help mitigate the financial consequences of the licensing holdups,” appreciating TfL’s constructive cooperation in addressing both the delays and the provision of the goodwill payment.
Conversely, an ADCU representative criticized the “goodwill payment” of £500, arguing that it is insufficient to adequately compensate drivers for the hardships endured due to the delays. The union noted that some members had to wait several months for their license renewals, leading to car repossessions.
Last April, BBC News reported on the adverse effects of these delays on drivers.
An Uber driver, Abdullahi, who requested anonymity, shared that he became homeless after TfL failed to renew his private hire license. Lacking income, he fell behind on rent and was ultimately evicted. “This is our livelihood and how we support our families,” he said.
The ADCU spokesperson emphasized that while they would advocate for £500 for each week of waiting, even that may not suffice to compensate for the negative impact some members experienced.
