All taxis and civilian drivers may have to pass enhanced criminal record checks in accordance with new government proposals.
To better protect vulnerable passengers, the Department of Transportation has begun consulting on new licensing guidelines.
Last year, the government report found that current law regulating drivers is "not suitable for modern society".
This consultation will also consider whether or not CCTV should be fitted in taxis and personal vehicles.
All video recording systems can only access footage if they are encrypted and reported to be a crime.
The government also said it would introduce national minimum standards for drivers.
This includes building a national licensing database and limiting drivers from tens of miles away from where you have a driving license.
- Why are there taxis in other cities?
Those whose taxi licenses are denied by the local authorities in England and Wales under the current system can travel to other areas where the licensing authority is more generous.
Other proposed safeguards include a council recommending that all drivers be subject to identification and enhanced criminal record checks.
Consultation will be held until April 22.
Taxi Minister Nusrat Ghani says, "The majority of drivers behave safely and responsibly, but taxis and mini-drivers often use their jobs to feed vulnerable people, women and children.
"This rule will make it suitable for the driver to keep passengers safe and keep people safe so that people with bad intentions can not block the wheels of taxis or mini-carts."
- Taxi driver's license cancellation after guide dog refusal
Last year it was found that a taxi license was issued to drivers convicted of crimes including sex offenses and reckless driving.
Current licensing agencies, such as the Council, must decide if someone is "appropriate and appropriate" before granting taxi or personal employment permits.
Although some guidelines have been published, there are no legal rules for how to determine if someone is "fit and appropriate".
DfT said the new guidelines will be consistent across the country.