A gesture of goodwill: TfL pays out £7 million compensation for taxi drivers affected by licence delays

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Transport for London (TfL) has issued more than 16,000 goodwill payments of between £300 and £500 to taxi and private hire drivers affected by licensing delays, according to the Mayor of London, Sir Sadiq Khan.

The figures were disclosed in response to a formal question from Assembly Member Elly Baker, with the query seeking clarity on how many drivers were expected to qualify, how many had been paid, and the overall cost of the scheme, reports TaxiPoint.

In his response, the Mayor confirmed that as of mid-March 2026, more than 16,000 payments had already been issued by Transport for London. However, he indicated that work is ongoing to determine the final number of eligible recipients.

TfL has not yet published a definitive estimate of how many licence holders will ultimately qualify for the payments. The total financial impact on the transport authority also remains undetermined, with officials still assessing the full scope of claims.

The goodwill payment scheme, for which the taxpayer is footing the estimated £7 million bill, was introduced to compensate drivers who experienced delays in the processing of taxi and private hire licences. These delays have had operational and financial consequences for drivers unable to work while awaiting approvals.

Industry stakeholders have been closely monitoring the rollout of the scheme, particularly given the scale of London’s licensed driver workforce and ongoing concerns around administrative backlogs within TfL’s licensing system.

Mayor Khan said:

“Transport for London (TfL) has issued over 16,000 goodwill payments as of mid-March 2026. TfL continues to work through the final numbers to ensure all those eligible receive a goodwill payment.”

(Picture: TfL)

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