In 2025, the income of a UK taxi driver continues to shift depending on where, how, and when they drive. A full-time driver in Manchester can earn over £900 a week before expenses. In smaller towns, earnings can drop to nearly half that amount. But gross figures rarely tell the truth. A driver’s actual income depends on many factors, some of which are within their control, while others are not.
Fuel prices, for one, remain unpredictable. Electric vehicles offer some relief, but the upfront cost of switching is still a barrier for many. Maintenance is another cost that eats into profits. Tyres wear out fast. Brakes don’t last long when driving in stop-start traffic. Even keeping the car clean, especially for app-based drivers who are rated on vehicle condition, can become a weekly bill.
Then there’s insurance, and this is where things can’t be overlooked. A standard private car policy won’t protect someone carrying paying passengers. Taxi insurance is required by law if you drive for hire and reward. It covers not just the vehicle, but the people inside and any third parties affected by an accident. Unlike domestic policies, taxi cover reflects the extra time spent on the road, the higher risk areas often driven through, and the business nature of the job. Whether it’s private hire, where bookings must come through an operator, or public hire, where you can be hailed from the street, having the right policy ensures you’re operating legally and financially protected if anything happens.
App commissions further reduce weekly pay. Some platforms take over 20% per ride. That leaves less for fuel, rent, and savings. Drivers who own their vehicles might do better than those who lease, but even ownership comes with its own set of headaches, such as road tax, parts, and downtime when something breaks. When business slows down in off-peak hours, the cost-to-earnings ratio becomes tight.
City drivers can do more trips per hour, but they also face more competition. Licensing authorities in major areas sometimes limit how many can operate, pushing new drivers toward smaller towns where demand fluctuates more. Someone working nights might avoid traffic, but risks fewer fares and less safety. The best hours aren’t always the easiest ones to work, especially for those with families or other jobs.
Many drivers spend time each year shopping around for a better deal on taxi insurance, hoping to lower premiums without losing essential cover. Premiums themselves vary widely. Age, driving history, location, and even which licensing authority issued the badge all affect the price. A newer driver operating in central London could pay far more than a veteran driver in a quiet part of Yorkshire. Still, even though cost matters, dropping to the bare minimum third party only leaves you more exposed when something goes wrong.
A few drivers manage to boost their earnings by securing regular school contracts or business accounts. These jobs offer stability but often require the right licences, vehicle type, and reputation. Others target festivals, sporting events, and airport runs to fill slow weeks. But it takes planning and knowing the local rhythm. Drivers who understand demand patterns can shift their availability to match peak hours. Some track community events or flight schedules to position themselves ahead of time. Others build connections with local hotels or venues to get early calls when transport is needed.
The life of a taxi driver in 2025 isn’t easy, but it’s not without opportunity. Those who treat it like a business, managing hours, tracking costs, and ensuring proper documents like taxi insurance are in place, stand a better chance of staying profitable. The money is still there. It’s just harder to keep without sharp decisions at every turn.
