Drivers are heading to social media to buy up cars already registered in the West Midlands city of Wolverhampton, where licensing requirements are seen as far easier than in other areas.
There are now serious concerns that some cabbies could be dodging tough safeguarding checks, especially in places previously hit by child sexual exploitation scandals, reports The Times.
The newspaper first exposed the issue back in 2018, reporting that Wolverhampton had become the authority of choice for drivers across England who were looking to obtain a minicab licence.
And the scale of the issue is only worsening. Figures from the Greater Manchester Combined Authority show that, as of this year, more than one in 10 taxi licences in England were handed out by Wolverhampton council.
Baroness Casey of Blackstock recently flagged up the loopholes allowing private-hire drivers to work anywhere across the UK as a serious safeguarding risk for young people.
Ministers have accepted all 12 of her recommendations and promised to move “at pace” to end this practice. However, campaigners say the government must go further, calling for stricter licensing checks across the whole of the country.
Although drivers must pass checks — including a DBS background check — wherever they are licensed, some local councils demand much higher standards than others.
One such authority is Rotherham, which introduced much tougher licensing rules after the 2014 Jay report revealed that 1,400 girls had been groomed between the late 1990s and early 2010s, often using taxis to transport them.
That led Rotherham borough council to make CCTV mandatory inside all taxis, clearly define what counts as a “fit and proper person,” and demand that applicants pass a safeguarding test with a 100 per cent pass rate.
Yet these protections can easily be sidestepped thanks to legislation introduced under David Cameron’s government in 2015, which allows private hire drivers to work nationally regardless of where they obtain their licence.
Andy Burnham, the mayor of Greater Manchester, recently warned that almost half of all private hire drivers operating in his city are actually licensed elsewhere.
Data obtained by the Manchester Evening News last year showed 8,952 drivers working across the region had licences from Wolverhampton council — some 80 miles away — making up 35 per cent of its private hire cars.
And the Liverpool Echo reported that, in 2024, Wolverhampton handed out nearly 500 licences to drivers using Liverpool postcodes.
One seller advertising a Prius on Facebook told the paper: “People like the council in Wolverhampton — it’s easier to get a badge. The test there is easy. In Manchester, it’s very hard. That’s why people go to Wolverhampton.”
The fees for a licence also swing wildly between councils. Rotherham charges £210 for a one-year licence, while Wolverhampton asks just £49.
Many of the cars changing hands on social media come with a Wolverhampton taxi licence already attached. But buyers still need to obtain a personal licence from the council to drive them legally.
Casey warned this week that although most cabbies were law-abiding, “as a key part of the night-time economy, taxis have historically been identified as a way children can be at risk of sexual exploitation.”
She added: “Local authorities issue taxi licences in line with statutory guidance as a means of combating child sexual exploitation, but they are being hindered by a lack of stringency in other local authorities and legal loopholes which mean drivers can apply for a licence anywhere in the country.”
A spokeswoman for the City of Wolverhampton council said safeguarding was its “number one priority in taxi licensing,” and that it was “the only local authority which checks drivers on the Update Service DBS status every day.”
She added: “It is illegal for the council to refuse applicants a taxi licence on the basis of where they live. Under the current law, applicants are able to apply to any licensing authority for a licence. It is also illegal for licensing authorities to impose a limit on the number of private hire licences they issue. The council does not gain financially from taxi licensing, as the fees are legally ringfenced for spend only on related activities.
“Our early adoption of digital technology has allowed us to offer a simple and efficient online application procedure, with the requirement that drivers attend in person for training and strict assessment before an application can be processed.”
The Department for Transport was contacted for comment.