Driving licence fees to be slashed

p4939UK-News-6-1

Published: Saturday 25th October 2014 by The News Editor

Comments (0)

Young drivers facing the mounting costs of taking to the road might well breathe a little easier after the Government announced it was slashing the cost of obtaining a licence.

The cost-cutting measure, which will see the price of a provisional licence fall to £34 from £50, was announced today by ministers, who estimated it would save all new drivers in the region of £80m over the next decade.

Other cuts coming into effect on October 31 include the costs of renewing a licence online every 10 years, reduced from £20 to £14, and a tachograph card used by businesses to monitor how far staff drive, which will fall from £38 to £32.

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 £150 million over the next 10 years.”

The agency processes one million “first licence” applications every year and the fees drop is expected to save new drivers £82.2 million over 10 years, with more than 77% of these applications are made by 17 to 24 year olds.

In addition 2.1 million photocard licences are renewed every year, meaning motorists already on the road would save £61.3 million collectively over a decade.

Businesses make another 85,500 renewals a year and will save £2.44 million over 10 years while the cost savings to tachographs will save another £3.58 million over the decade.

Chief Secretary to the Treasury Danny Alexander said: ” Giving savings back to the taxpayer is a key element in this government’s drive for a stronger economy and a fairer society. That’s why we’re slashing the cost of getting a driving licence and giving it straight back to young people and businesses, saving £150 million over 10 years.”

The DVLA is carrying out a review of all fees and other cuts being considered include vehicle first registrations and duplicate registration certificates.

It comes after a report by AA Index this week revealed motorists are seeing the cost of taking out car insurance increase for the first time in more than two years.

Published: Saturday 25th October 2014 by The News Editor

Comments (0)

Local business search