Press release 21: DVLA launches second consultation on revised fee structure

The Driver and Vehicle Licensing Agency (DVLA) has launched a second consultation on proposals for a revised fee structure for driver licensing and vehicle registration. The new consultation document sets out three funding options identified following the first consultation in August 2004. This first consultation received around 1,000 responses outlining proposals for simplifying the fee structure to ensure a fairer system of charges. Most of the Agency’s costs are incurred in running and maintaining the vehicle and drivers registers. These processing services of changes in name, address, and vehicle keepership are currently free of charge and are subsidised by applicants for provisional driving licences and those paying vehicle registration fees. The Agency wishes to address this inequality.

In addition, the Agency will introduce a number of new initiatives to improve customer service and help in the Government’s fight against identity fraud and vehicle crime. They include expanding the range of web based services it offers customers and introducing more secure driving licences. Such initiatives will be funded by the revised fee structure.

The three funding options outlined in this consultation are based on feedback from the original consultation. Each option includes the introduction of a fee to cover increased costs for administering the 10 yearly renewal of photocard licences (beginning June 2008). This was broadly supported in the original consultation. The proposed options are as follows:

Option 1: retains the current fees structure and adjusts only the level of the driving licence fee to meet the demands of future services
Option 2: retains the current fees structure but varies the fee level for both driving licence and first vehicle registration in order to restrict the scale of driving licence fee increase
Option 3: changes the fees structure by introducing an annual registration fee linked to vehicle transactions to cover all DVLA routine register maintenance. Funding these activities through a widely based fee would result in a reduction of existing fee levels for both first driving licence and first vehicle registration. Costs would be recovered from a far wider section of motorists than the small minority (10 per cent) who currently fund all DVLA register maintenance through their existing fee payments.

Views are sought from interested parties by 21 July 2006. A copy of the consultation document is available on the DVLA website at www.dvla.gov.uk/consultations or alternatively by writing to Financial Management and Reporting Unit, DVLA, Longview Road, Swansea, SA6 7JL, email finance.dvla@gtnet.gov.uk.

Notes to editors:

• DVLA is an Executive Agency of the Department for Transport (DfT)
• DVLA is responsible for issuing driving licences and registration certificates, and keeping records for all drivers and vehicles in Great Britain

For general DVLA press enquiries please contact:
DVLA Press Office
01792 782318
press.dvla@gtnet.gov.uk