TfL pays £7,642,120 to taxi drivers after licence delays
Nearly 18,000 drivers received compensation under a scheme introduced to address processing backlogs
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Transport for London has paid £7,642,120 in compensation to taxi and private hire vehicle drivers affected by delays in licence processing. The payments were made under the Goodwill Payment Scheme, which ran from 1 September 2024 to 31 December 2025. A total of 17,972 drivers received payments, according to figures obtained by the Conservative Party through a Freedom of Information request.
Why the delays occurred
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The delays were caused by the introduction of new licence processing software and the recovery from an earlier cyber security incident, as reported by the *Evening Standard*. TfL faced threats of legal action due to the disruption, which left drivers unable to work while awaiting licence renewals. The authority responded by recruiting additional staff and issuing short-term licences to existing drivers where appropriate.
To qualify for compensation, drivers had to meet specific criteria. They needed to be existing taxi or private hire drivers whose renewed licences were issued during the scheme’s operational period. Drivers also had to have experienced a period without a valid licence and passed all mandatory assessments before their previous licence expired.
Political criticism
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The Conservative Party criticised Mayor of London Sadiq Khan over the compensation costs. Shadow Transport Secretary Richard Holden said, as reported by the *Evening Standard*, that the payments demonstrated a failure in administration. "Labour's Mayor of London once again proves his woeful administration is wasting Londoners millions of pounds and holding our capital back," Holden said. He called for improvements to the licensing system.
James Cleverly, Conservative MP for Braintree and a potential candidate for the 2028 London mayoral election, added that Londoners deserved a transport system that worked for both users and those who fund it. The Conservatives obtained the figures through a Freedom of Information request, which revealed the total compensation bill by mid-June 2026.
Current status of licence processing
A TfL spokesperson told the *Evening Standard* that the licence renewal process is now operating steadily. "We are very sorry to drivers who experienced issues with our processing times of private hire driver licences," the spokesperson said. "We worked urgently and took a number of steps to mitigate the impact of licence processing delays."
TfL is currently prioritising licence renewals for drivers whose permits are due to expire within the next six weeks. This measure aims to prevent further disruptions to drivers’ ability to work. The authority has also strengthened support for first-time applicants to reduce future delays.
What happens next
TfL has stated that the licence renewal process is now stable. No further compensation schemes have been announced for drivers affected by the delays. Drivers whose licences are due to expire soon are advised to check TfL’s website for updates on processing times and renewal procedures.
Questions this report answers
+How much did TfL pay in compensation to taxi drivers?
TfL paid £7,642,120 in compensation to 17,972 taxi and private hire drivers affected by licence processing delays. The payments were made under the Goodwill Payment Scheme between September 2024 and December 2025.
+Why were there delays in taxi licence renewals?
Delays were caused by new licence processing software and recovery from a cyber security incident, as reported by the *Evening Standard*. TfL recruited additional staff and issued short-term licences to mitigate the impact.
+Who was eligible for the compensation payments?
Drivers whose renewed licences were issued between 1 September 2024 and 31 December 2025 were eligible. They had to have experienced a period without a valid licence and passed mandatory assessments before their previous licence expired.
+Is the licence renewal process now running smoothly?
TfL stated the licence renewal process is now operating steadily. The authority is prioritising renewals for drivers whose permits expire within six weeks to prevent further disruptions.
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