Government announces an independent review of DVLA

Published: 31/07/2023

The government has launched an independent review of the Driver and Vehicle Licensing Agency (DVLA) so that it can "continue to provide excellent customer-focused digital services to keep drivers and vehicles on the road simply, safely and efficiently."

An independent review will "ensure that DVLA can continue to provide a licensing service to motorists and the public" says the Department for Transport.

The DVLA will be assessed on efficiency, efficacy, accountability and governance – the four pillars set by the Cabinet Office

With over 50 million driver records and more than 40 million vehicle records, the DVLA maintains the correct registration and licensing of millions of drivers while protecting data and tackling vehicle tax evasion.

DVLA also collects £7 billion in vehicle excise duty (VED) annually on behalf of HM Treasury and is a net contributor to government finances, raising more than £260 million in 2022-23 for HM Treasury and the Department for Transport (DfT) through the sale and processing of personalised registrations and transfers.

The review will assess DVLA based on the four pillars set by the Cabinet Office of efficiency, efficacy, accountability and governance. Further detail on areas the review will cover are in the terms of reference (see below).

Janette Beinart, non-executive director of the Cabinet Office and National Highways and previously Vice President and Global Chief Information Officer at Shell International, has been appointed to lead the review with support from DfT officials. The review is expected to conclude "this winter," with the results published in "early 2024"

Roads Minister Richard Holden said: "DVLA plays a crucial role in making sure drivers and vehicles can get around legally, safely and with confidence, giving drivers peace of mind by storing their records safely and tackling vehicle tax evasion.

"With over 80% of all transactions now being carried out online, this review will help us understand how the DVLA can continue to grow from strength to strength and how we can support it to become more digital to efficiently serve the increasingly digitally savvy driver."

The Rt Hon Sir Greg Knight MP; Federation Chairman, David Whale; Mr Richard Holden, MP, Minister for Roads and Local Transport, who is responsible for DfT Executive Agencies, DVLA and DVSA; Mr Greg Smith MP and other key industry representatives meeting in Westminister in June

 

The review will also assess how DVLA works with its wide range of stakeholders within and outside of government to help keep Britain’s roads safe.

DVLA Non-Executive Chair, Lesley Cowley OBE, said: "Our customers remain at the heart of everything we do at DVLA and we welcome this review as an opportunity to highlight our commitment to delivering world-class services, our role in keeping Britain’s roads safe, and the continued hard work and dedication of our over 6,000 staff.

"It comes at an important time for DVLA, as we continue to launch new digital services and set ambitious targets for the future, as a forward thinking, dynamic organisation.

"We look forward to working closely with the government in support of this review over the coming weeks and months."

DVLA review 2023 terms of reference

The terms of reference for the public body review of the effectiveness and efficiency of the Driver and Vehicle Licensing Agency (DVLA).

Details

This review is part of the Cabinet Office programme of public body reviews. It will:

• consider the DVLA’s governance, accountability, efficacy and efficiency
• look at the extent to which DVLA is enabling wider government priorities and actively learning from wider government transformation agenda
• make recommendations to ministers to inform decisions on future delivery arrangements and efficiency savings

This document (below) sets out the full terms of reference for the review.

Background

The DVLA is an executive agency of the Department for Transport, responsible for maintaining more than 51 million driver records and almost 40 million vehicle records.

In 2022 to 2023, the DVLA issued 11.9 million driving licences and 16.8 million vehicle registration certificates. DVLA contact centre staff answered 13.3 million queries including 6.7 million calls, 5.1m calls to the automated electronic vehicle licensing system, 0.6 million emails and 0.9 million webchats and chatbot enquiries.

The DVLA collects more than £7 billion in vehicle excise duty on behalf of HM Treasury annually.

In addition to the DVLA’s core business of maintaining accurate and up to date records of drivers and vehicles, and collecting vehicle excise duty on behalf of the Exchequer, it is also responsible for:

• taking enforcement action against those who evade the payment of vehicle excise duty
• issuing vehicle registration certificates to the registered keepers of vehicles
• issuing photocard driving licenses
• recording driver endorsements, disqualifications, and medical conditions
• registering and issuing tachograph cards for heavy goods vehicle operators and drivers.
• helping the police deal with driver and vehicle-related crime
• generating revenue for the Exchequer through the sale of personalised vehicle registration numbers

Purpose

As with all public body reviews, this review will:

• consider the DVLA’s governance, accountability, efficacy and efficiency
• consider the extent to which DVLA is enabling wider government priorities and actively learning from wider government transformation agenda
• make recommendations to ministers to inform decisions on future delivery arrangements and efficiency savings

Scope summary

Efficacy

In addressing efficacy, considerations include:

• all current responsibilities and objectives and the extent to which DVLA has the mandate, capability and capacity to deliver them
• how the DVLA delivers its objectives for customers and stakeholders across the motoring sector including but not limited to driving licences for those with medical conditions
• the extent to which DVLA is considering and working with the department on likely future responsibilities and strategy

Governance

In addressing governance, considerations include:

• whether current structures for governance, risk management and internal control are effective and support the realisation of opportunities to become even more effective and efficient
• the extent to which the board is effective in executing its responsibilities and holding the executive to account
• processes to ensure capability and diversity in board recruitment

Accountability

In addressing accountability, considerations include:

• the extent to which DfT’s sponsorship of the DVLA is effective and in line with Cabinet Office arm’s length body sponsorship code of good practice, including the current framework agreement and KPIs between DVLA and the department
• whether the DVLA’s lines of accountability are clear and balanced, including the extent to which the DVLA is accountable to its customers (acting on customer feedback to improve performance), DfT and to Parliament

Efficiency

In addressing efficiency, the considerations include:

• where savings to resource departmental expenditure limits (RDEL) of at least 5% can be made, specifically identifying where efficiency gains, both cashable and non-cashable, can be made within the DVLA
• financial management arrangements in place and whether the funding model (built of statutory and commercial fee income) is the right model for the future
• how the DVLA considers and implements measures to maximise efficiency, including benchmarking and digitisation whilst ensuring resilience of the organisation and securing the capabilities required for the future

Approach

All public body reviews draw upon data and evidence including through consultation with wider stakeholders, representative bodies and the devolved governments as appropriate.

A challenge panel will support the review to gather thoughts and discuss emerging findings.

Members are expert advisers drawn from within government and the stakeholder community.

DfT has appointed Janette Beinart to lead the DVLA review. She will be supported by a review team within the Department for Transport.

Timing

Now the review has started, the lead reviewer, supported by the review team, will consult targeted stakeholders including UK government departments, stakeholder groups, businesses, and representative bodies, as well as with DVLA’s board, its staff and management.

Findings from the review and recommendations are expected to be published in early 2024.