Drivers set to save 拢150 million over the next ten years as driving licence fees fall
Drivers will save up to 拢150 million over the next ten years as the cost of getting a driving licence is slashed, Chief Secretary to the Treasury Danny Alexander and Transport Minister Claire Perry announced today.
Driving licence fees will fall by up to 32% as part of the government鈥檚 commitment to deliver savings to the taxpayer.
The changes, which follow a recent public consultation, come into force from 31 October 2014. Drivers applying online will see the fee for a provisional driving licence fall from 拢50 to 拢34 and online renewals after ten years fall from 拢20 to 拢14. The fee for driver tachograph cards - used by businesses to record how far their staff are driving - will fall from 拢38 to 拢32.
Chief Secretary to the Treasury, Danny Alexander said:
Giving savings back to the taxpayer is a key element in this government鈥檚 drive for a stronger economy and a fairer society. That鈥檚 why we鈥檙e slashing the cost of getting a driving licence and giving it straight back to young people and businesses, saving 拢150 million over ten years.
Transport Minister Claire Perry said:
The cost of driving, especially for young drivers, can be significant and we are committed to cutting costs where we can. Thanks to DVLA making large scale savings to their running costs, we have been able to cut the cost of the driving licence which will save drivers and businesses 拢150 million over the next ten years.
DVLA is reviewing all fees and the reduction in driving licence fees is a result of the first part of this ongoing review. Other fees being considered in the review include vehicle first registrations and duplicate registration certificates.
A million 鈥榝irst licence鈥� applications are processed every year and the fees drop will save new drivers 拢82.2 million over ten years. Over 77% of these applications are made by 17-24 year olds. In addition 2.1 million photocard licences are renewed every year and the changes will save motorists 拢61.3 million over a decade.
Businesses make another 85,500 renewals a year and will save 拢2.44 million over ten years while the cost savings to tachographs will save another 拢3.58 million over the decade.
| Type of licence | Current fee | New fee online | New fee postal application |
|---|---|---|---|
| Provisional licence | 拢50 | 拢34 | 拢43 |
| Renew Photocard licence | 拢20 | 拢14 | 拢17 |
| Driver and Company Tachograph cards | 拢38 | Postal service only | 拢32 |
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Notes to editors
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The current driving licence fees are available to view on Driver licence fees
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The new fees will come into force on 31 October 2014.The reduction in driving licence fees is the first phase in the DVLA review of its fees. The second phase will involve a comprehensive review of the DVLA鈥檚 funding and will focus on the way services are delivered to customers in light of the introduction of further digital services
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