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London: Drivers offered £500 ‘goodwill’ payment for licence delays

Transport for London has launched a new scheme designed to help taxi and private hire drivers who have been affected by licence delays.

The Goodwill Payment Scheme has been opened for taxi and private drivers, provided they meet certain criteria, as introduced this week.


Transport for London has previously warned of delays relating to the introduction of a new licence processing software.

The organisation has also had to deal with the recovery effort from a previous cyber attack, which led to delays in receiving new licences for existing drivers.

TfL confirmed that it would continue to provide updates on the processing of licences through its website, including with the announcement of the Goodwill Payment Scheme.

The scheme will allow eligible taxi or private hire vehicle licensees a one-off goodwill payment equal to a refund of the Application Fee and Grant of Licence Fee.

Taxi drivers could receive a maximum of £300, while private hire drivers can be eligible for a £310 return.

Impacted motorists who have not had their licence for more than even days will receive an enhanced goodwill payment of £500.

Busy London road and a man holding cash

Impacted drivers could receive hundreds of pounds from Transport for London for licensing delays

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GETTY/PA

Those who are eligible for the payment will not need to act, as all licensees will be contracted directly and issued with a cheque.

The criteria for the goodwill payment includes:

  • An existing taxi or PHV driver whose renewed licence was issued between September 1, 2024, and December 31, 2025
  • The application to renew a licence must have been successful and the driver is now licensed and remained licensed
  • The driver experienced a period of time where they were not licensed
  • The driver must have passed any mandatory driver assessments before the licence expired
A taxi parked in London

A driver impacted by the delays can receive up to £500 through the Goodwill Payment Scheme

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PA

TfL added: “It is important to note that the submission of an application does not guarantee that a licence will be granted at the end of the process.

“The licence application process is multi-staged and often iterative, involving requests for further information or clarity from applicants.”

However, the move has been met with dissatisfaction, including from the App Drivers and Couriers Union (ACDU), who claimed that some of its members had been made homeless.

The union added that it would be seeking additional payments from TfL for its drivers, including “£500 for every week a driver has had to wait”.

Taxis parked at a taxi rank

TfL has apologised for the licensing delay impacting taxi and private hire vehicle drivers

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A spokesperson said: “The so-called goodwill payment of £500 is nowhere near enough to compensate drivers for the suffering they have endured as a result of these delays.”

Meanwhile, Steve Garelick, regional organiser for the GMB Union, noted the Goodwill Payment Scheme would “go some way” to address the financial impact of licensing delays.

A TfL spokesperson said: “[The Goodwill Payment Scheme] follows our work last year to mitigate the impact of these delays, including recruiting additional licensing staff and issuing short-term licences to PHV drivers in appropriate circumstances, enabling them to continue to work.

“We continue to take every possible step to ensure that all drivers who meet licensing requirements are licensed and able to work.”

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