Drivers spend millions on UK licences amid rule changes aimed at making it harder to get on roads

Local authorities handed out 66,709 licences this year

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Hemma Visavadia

By Hemma Visavadia


Published: 13/08/2024

- 16:57

Drivers have spent £8.8million on licences so far this year

Local authorities in five major cities have raked in millions through taxi and private hire vehicle licences across the UK in the first eight months of the year.

According to reports, five councils issued a total of 66,709 licences in 2024, costing drivers a total of £8.8million.


To obtain a taxi licence in the UK, drivers must pay a licence application fee and a grant of licence fee which varies depending on the area.

In London, however, the rules are different and were recently changed on July 1 with motorists now required to disclose further information.

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Sadiq Khan with an electric taxi in London

TfL changed taxi rules to require further details from drivers

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Licenced taxi drivers, private hire vehicle drivers and PHV operators must now tell Transport for London about any arrest and release, charge, caution or conviction within 48 hours. This includes all driving offences resulting in penalty points on their DVLA driving licence.

The research found that taxis and PHVs in Wolverhampton had the cheapest and easiest route to apply for a licence.

On average, drivers spend £49 on a new one-year licence for a Hackney Carriage or PHV, but it sharply increases to £125 if the car is under 16 years old.

Drivers who obtain a licence in Wolverhampton can also use it anywhere in England, under relaxed rules with no need for a local knowledge test, English test, advanced vehicle test, and allowances for older and accident-repaired cars.

The data showed that taxis with Wolverhampton plates have been spotted in Manchester, Bury,York and all over England.

Wolverhampton City Council issued 42,622 licences with drivers required to undertake a simple multiple-choice test and have a vehicle younger than 12 years old.

However, despite the relaxed rules in the city, the council warned of the rise in cases of drivers pretending to be taxis and scamming passengers.

The council said it would start implementing new guidelines designed to prevent fake taxis from being on the road and improve passenger safety.

Across the UK, only licenced taxis can use the official signage and park in taxi ranks, something PHVs are prohibited from doing.

The need for change comes after more cases of fake signs being used on unlicensed vehicles have been compounding in the city. In some serious cases, unlicensed drivers have attacked lone passengers, the council warned.

Notably, Bradford Council licence fees are 137 per cent more expensive than in Wolverhampton, while 6,846 licences have been handed out this year. However, it has stricter requirements, including local knowledge tests, driving standards assessment, and video interviews for English proficiency.

Meanwhile, Birmingham City Council gave out 6,429 licences and requires drivers to have vehicles that have been approved at MOT centres and strict vehicle signage.

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Union Jack taxi

Wolverhampton has the cheapest cost for a taxi licence

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Sefton Council have issued 5,586 licences but requires motorists to pass medical checks. There is also a standard meaning they must be registered no more than eight years ago.

Leeds City Council approved 5,226 licences but with the toughest restrictions. Drivers would need to take an advanced driving test, English and ESOL 3 test, local knowledge and tourism test, and adhere to strict vehicle age and mileage limits.

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