The Cost of Living: The Least and Most Expensive Places to be a Driver

The UK’s cost of living crisis continues to impact industries across the country, and taxi and private hire drivers are no exception. Rising fuel prices, soaring insurance premiums, and increasing maintenance costs have created a challenging environment for many in the trade.

These pressures are compounded by broader economic trends, including persistently high inflation rates, which have eroded purchasing power and made daily necessities more expensive for everyone.

Fuel, Maintenance, and Insurance: The Triple Threat to Driver Finances

Fuel, maintenance, and insurance collectively form the cornerstone of operating expenses for taxi and private hire drivers, and they’re rising across the board. Fuel costs, in particular, have been a major driver of financial strain for drivers.

According to RAC data, petrol prices peaked at over £1.90 per litre in 2022 and, while they have since stabilized to a degree, they remain significantly higher than pre-pandemic levels. Data from the National Taxi and Private Hire Driver Survey, the average UK driver is spending around £477 a month on fuel. This figure varies susbtantially between regions, with drivers in Northern Ireland spending the most each month (£556) while drivers in the North of England spend the least (North West & Cumbria, £435; Yorkshire & The Humber, £427).

Inflation has also pushed up the cost of vehicle maintenance, another critical aspect of a driver's expenses. With parts and labour both becoming more expensive, the average taxi or private hire driver is paying around £2770 annually on upkeep. Again Northern Ireland takes the top spot as most expensive, with the average driver spending over £4000 a year to upkeep their vehicle.

This is likely down to the geography of the region. As Northern Ireland is one of the most rural regions in Europe, drivers put more miles on the clock, which ultimately leads to more maintenance. This is backed by our survey data, showing drivers from NI rack up the most mileage each year.

After maintenance, insurance is the third necessity for drivers and premiums for taxi and private hire insurance have climbed in recent years. According to industry reports, these premiums are rising faster than general motor insurance costs, adding further pressure to drivers profit margins.

Our survey revealed that drivers pay an average of £1,528 annually for their taxi or private hire vehicle insurance. However, this average masks some regional differences, with drivers in the North West & Cumbria paying the highest average (£1,647) and those in the South West paying the lowest (£1,474).

Regional Disparities in Driver Costs: Who Has It Worst?

Northern Ireland stands out as the most expensive region for drivers, with annual total costs exceeding £12,000. Scotland and the South West follow as the next most expensive regions, with total costs in the region of £11,000. Both regions face significant maintenance and fuel costs, although their insurance costs remain closer to the UK average.

Interestingly, Yorkshire & The Humber emerges as the most affordable region for drivers, with total annual costs at just over £8,600. Lower maintenance (£1,902.44) and fuel costs (£5,121.95) are the primary reasons for this, possibly due to shorter travel distances and reduced wear on vehicles.

The findings highlight the significant financial pressures faced by taxi and private hire drivers, particularly in regions like Northern Ireland and Scotland. These costs not only impact driver earnings but also pose a challenge to the industry’s sustainability, especially in areas where demand for services is already high.

Understanding these regional disparities is critical for policymakers, operators, and drivers alike. Whether it’s addressing fuel prices, advocating for fair insurance premiums, or investing in vehicle efficiency, there’s a clear need for solutions that reduce the financial burden on drivers.

To explore the full extent of these challenges and gain further insights into the industry, download the 2024 National Taxi and Private Hire Driver Survey today. Packed with data, trends, and driver perspectives, it’s an essential resource for anyone connected to the trade. Just click the link above, or paste the following URL into your browser:

https://www.taxiplus.co.uk/national-taxi-and-private-hire-driver-survey-download