DVLA faces ‘significant digital and data challenges’

An independent review of the Driver and Vehicle Licensing Agency (DVLA) has concluded it needs to “raise its sights” to transform its services.

The DVLA holds more than 50 million driver records and more than 40 million vehicle records, while collecting £7 billion-plus a year in Vehicle Excise Duty (VED).

The review is part of the Cabinet Office Public Body Review Programme and assessed DVLA against the four pillars of efficiency, efficacy, accountability and governance.

It concluded that DVLA is a critically important executive agency of the Department for Transport (DfT) but said that there remain “significant digital and data challenges which DVLA must now resolve at pace”. 

In the report’s executive summary, it acknowledges that the organisation has made progress in transitioning its “complex” legacy information technology (IT) platform to a more “flexible, resilient and agile cloud-based platform”. 

It says that “full transition will offer considerable efficiency and customer service improvements, and should be prioritised”. 

However, it also notes the complexity and resource demands of delivering Government priorities in parallel, such as the impact of VED for electric vehicles (EVs). 

Modernisation of vehicles IT currently remains several years away, it says, despite vehicles transactions constituting the majority of DVLA’s services. 

It reports: “Some of DVLA’s services and internal processes remain paper dependent, driven in part by customer choice to transact via post, which is reflected in the size and shape of DVLA’s current workforce. 

“The review noted that incoming post is largely digitised upon receipt to facilitate internal processing.”

Therefore, it says that the review finds DVLA at a “critical moment”. “Having rightly focussed on recovering service delivery from the impacts of the pandemic, DVLA should now raise its sights to focus on further transformation of its services,” it adds. 

The independent review sets out 19 recommendations, including: setting an ambitious strategy for service delivery; accelerating its transformation to an even more dynamic, digital, and data-driven organisation; and strengthening the customer experience, particularly for vulnerable and smaller stakeholder groups.

Future of roads minister, Lilian Greenwood, said: “From holding more than 50 million driver records and issuing driving licences to helping the police deal with crime, DVLA plays a crucial role in ensuring our roads are among the safest in the world.

“This review is critical to understanding how the agency can continue to go from strength to strength to meet the ever-changing needs and challenges of the future.

“We will work closely with DVLA to ensure it continues to evolve as a customer-focused, data-driven, digital-first organisation.”

The minister accepted the findings of the independent review and committed DfT and DVLA to act on the recommendations.

DVLA non-executive chair, David Jones, said: “Our customers are central to everything we do at DVLA, a commitment that’s shared by our 6,000 plus hard-working and dedicated staff.

“We will continue to work closely with DfT and all of our stakeholders on delivering world-class services for our customers, responding to an increasingly digital world.”

The review was led by an independent lead reviewer, Janette Beinart, who is a non-executive director at National Highways.