London taxi fares to rise by average of 1.7% in April

Taxi fare rises have been agreed by the Transport for London's (TfL) board following consultation by TfL with the taxi trade and others including London TravelWatch, Age UK, London Chamber of Commerce and Industry, London Boroughs, London Assembly and London MPs.

for the 2013/14.  There will be a 1.7 per cent average increase.

John Mason, TfL's Director of Taxi and Private Hire, said: "Taxi fares are reviewed annually and in making a recommendation we take into account a range of factors that include taxi drivers' running costs including vehicle costs, parts and fuel.  This year's increase is the lowest for ten years and seeks to cover increases in the cost of running a black cab while continuing to provide passengers with value for money."

The Board also approved changes to taxi fares for journeys starting at Heathrow and the extension of a special provision linked to diesel prices.

To help compensate the upfront charge that drivers have to pay when entering the Heathrow feeder ranks, which is increasing in April, an additional charge known as the 'Heathrow Extra'  is added to passenger's Heathrow fares.  This 'Heathrow Extra' will increase by 80 pence, taking it from £2.40 to £3.20. 

Since July 2008 a special provision has been in place to allow taxi fares to be increased if diesel costs reach a specified level.  To date this provision has not been implemented.  The Board approved an extension of this provision for the coming year.  Therefore a 40 pence increase to all taxi fares will be implemented if diesel reaches 179.7 pence per litre.

 A final change will see the automation of the £4.00 charge added to fares over the festive period (20:00 on 24 December to 06:00 on 27 December and 20:00 on 31 December to 06:00 on 2 January) – previously this set charge was added manually by the driver. 

Taxi fares are reviewed annually and calculated by TfL based on a cost index that has been used since 1981.  The new fares will come into effect from Saturday 6 April 2013.

Taxi fares are calculated according to one of three tariffs. These are:

Tariff 1: Monday to Friday, between 06.00 and 20.00

Tariff 2: Monday to Friday, between 20.00 and 22.00, and weekends between 06.00 and 22.00

Tariff 3: Nightly between 22.00 and 06.00 and on public holidays