TfL launches goodwill payments after licensing delays leave drivers unable to work

Transport for London has introduced a one‑off goodwill payment scheme worth up to £500 for taxi and private‑hire drivers who were left unable to work because of severe delays in licence renewals. The move follows months of disruption caused by new IT systems and recovery work after a cyber incident, which created a backlog that left some drivers without valid licences for weeks.

TfL said the payments are intended to recognise the inconvenience caused, not to compensate for lost earnings. Drivers will receive a refund of their application and grant fees — £300 for taxi drivers and £310 for private‑hire drivers — with an additional £500 available to those who were left unable to work for more than seven days. Payments will be issued automatically by cheque to eligible drivers whose renewed licences were issued between 1 September 2024 and 31 December 2025.

The scheme has been met with strong criticism from driver unions. The App Drivers’ and Couriers’ Union described the offer as “an insult”, arguing that many drivers lost far more than £500 in income, with some facing debt, vehicle repossessions and legal action as a result of being unable to work. The Independent Workers’ Union of Great Britain echoed these concerns, saying the payments fall far short of the financial harm caused.

Political pressure is also mounting. London Assembly transport spokesperson Elly Baker said the payments were a welcome acknowledgement of failure but warned they “do not go far enough”. She highlighted that thousands of private‑hire drivers were still waiting for licence processing earlier this month, with hundreds having completed all checks but still unable to work.

TfL maintains that the goodwill scheme is a gesture of recognition rather than full compensation. However, with unions rejecting the offer and Assembly members calling for a more substantial response, the pressure on TfL to address both the financial impact and the underlying licensing issues is unlikely to ease.