DVLA price increase

Cost of keeping a driving licence lawful increases 14%

16 March 2009

It now costs £20 to replace a lost driving licence

A 14% increase in the cost of keeping a driving licence lawful is yet another example of drivers having to pay more for something that could be covered by general motoring taxation, says the AA.

The Driver and Vehicle Licensing Agency's increase in the fee from £17.50 to £20 to replace a lost licence, meet the requirement to update your photograph every 10 years, have endorsements removed and other services, exemplifies the increasing cost of motoring. In less than a week's time, fuel duty with VAT goes up another 2.12p per litre.

"The way that DVLA is funded means it must operate a trading fund and charge for its services. We as drivers are not cushioned from the increasing costs of staying lawful, although we pay £46bn a year in motoring taxes," says Paul Watters, the AA's head of roads and transport policy.

"The DVLA has collected over £1bn from sales of personalised number plates but Treasury takes most of that. If you add up all the costs of complying with the law such as MOT, licences and road tax they are quite a burden.

"Unfortunately, the DVLA has little choice as it has to live within its means. The economic downturn means it is £20m short, from problems such as people delaying the renewing of driving licences or starting to drive.

"Services from the DVLA have improved, for instance electronic re-licensing, but more still needs to be done. These rises come at a bad time with fuel prices on the rise and the credit crunch."

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26 March 2009