Taxi fares in Worcester are set to rise following approval from Worcester City Council to increase the maximum charges for Hackney carriage journeys. The decision comes despite ongoing worries that the price hike could hurt both drivers and customers in an already competitive market.
The fare adjustment, requested by the Worcester Taxi Association representing over 200 drivers, will see the initial hiring fee, known as the flag fare, increase from £4.30 to £5 for standard journeys. Nighttime and weekend rates will also rise, with fares between midnight and 7am, as well as on Sundays, Bank Holidays, and certain special dates, increasing from £5.50 to £6.40.
These new rates are pending a statutory consultation process before they are finalized.
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Niall McMenamin, the council’s principal licensing officer, explained that the council sets the maximum allowable charges for Hackney carriages. He emphasized that fares comprise the flag fare plus distance and time charges, which help drivers during slow traffic.
“The last fare increase was in 2022,” McMenamin said. “Fuel prices have increased dramatically, alongside vehicle running costs, annual license fees, and the general rise in the cost of living. We must balance the drivers’ need to earn a living with the public’s ability to afford taxi services.”
Committee chair Coun Richard Udall expressed concerns about the potential impact on passengers already burdened by rising living costs. “Our top priority has to be the consumer," he said. “Yet we must also acknowledge the industry’s need to survive in this challenging climate.”
Udall warned that higher fares might reduce demand and push customers to cheaper alternatives, particularly private hire vehicles, which operate on a pre-booking basis and often offer lower prices.
“There is a risk that taxi drivers could price themselves out of business amid fierce competition,” he noted. “I fear this increase could ultimately harm the industry by driving away customers.”
Coun Louis Stephen also questioned the wisdom of raising fares when drivers are already under financial pressure, suggesting it might deepen their disadvantage.
Mr McMenamin acknowledged the competitive landscape, noting that app-based private hire companies often undercut traditional Hackney carriages, and that younger customers tend to prefer these alternatives.
Most trips from Worcester’s city centre, The Cross, tend to be short—less than a mile—meaning the standard fare would increase modestly from £5 to around £5.60. For comparison, a two-mile trip currently costs £7 in Worcester, compared to slightly lower rates in nearby regions like Malvern Hills and Wychavon, and higher prices in Birmingham and Shropshire.
Importantly, the fare increase will only apply to Hackney carriages, which can be hailed on the street or picked up from taxi ranks. Private hire vehicles, which require prior booking, will not be affected by the new rates.