The paper counterpart to the photocard driving licence has today been replaced by an online service.

This will save motorists millions of pounds and change the way they share their information with employers and car hire companies, said the DVLA.

Last year the organisation had to replace around 445,000 counterparts because drivers had lost them, for which they were charged £20 each to cover the cost.

Transport Minister Lord Ahmad of Wimbledon said: “Replacing the counterpart with an online service will save motorists money and reduce unnecessary red tape.

“It will also benefit employers and vehicle hire companies. Relying on the counterpart meant relying on a potentially out-of-date piece of paper.

“Now, when the driver chooses to share it, those organisations will be able to see completely accurate information direct from DVLA’s records. This will reduce their risk and improve road safety.”

The paper counterpart includes information on a driver’s penalty points along with details of what vehicles they can drive.

Drivers still need to keep their actual driving licence, whether it is a plastic photocard licence or an old-style paper licence which was issued before 1998.

Oliver Morley, chief executive of DVLA, said: “It’s very easy to view and share your driving record. Just go to GOV.UK and search for ‘view driving licence’.

“You can view your information electronically and generate a check code which you can then share with people who need to see your details (such as an employer or car hire company). If you want to, you can also download and print a summary.”

However, a number of organisations feel that not enough has been done to publicise the changes.

A Nexus Vehicle Rental survey found that more than 80% of its 750 rental customers didn’t feel enough had been done to publicise the change, while 87% predict the new system will cause problems.

Mike Palmer, operations director at Nexus Vehicle Rental said: “This is a worrying situation that perhaps could have been prevented if the changes had been publicised more widely in the media.

“We have issued communications to all of our customers and will be offering any advice and support we can as the check code is introduced.”

Sarah Sillars, chief executive officer of the Institute for Advanced Motorists, added: “People are not aware of how many of the current procedures are changing.

“Similar to the abolition of the tax disc, they assume much of what has happened before will continue.

“The onus is very much on the individual to obtain the information they need beforehand.

“So we very much hope people will not be caught unawares, especially if they don’t want a nasty surprise when arriving to collect their car at the start of their holiday.”

The British Vehicle Rental and Leasing Association has set up an advice page for car hire customers to help them adapt to the change.

The webpage, available at www.bvrla.co.uk/counterpart also provides links to further information and contact details for the DVLA and vehicle rental operators.

Gerry Keaney, BVRLA chief executive, said: “Replacing paper forms with digital services is a great idea, but the Government has gone about this the wrong way by rushing the process and not giving enough warning to motorists.

“The online system being offered by the DVLA is far from ideal and the car rental industry is working with it as best it can.

“Customers can take extra precautions by ensuring that their rental company has access to their endorsement information – available via the DVLA’s Share Driving Licence service or its call centre.”

However, Licencecheck believes that while the abolition of the paper counterpart will present a short-term challenge for companies, in the longer term it will encourage better practices.

This, in turn, will improve road safety said managing director Richard Brown.

“A small minority of drivers who have been using altered or forged counterparts are finally going to be exposed and taken off the road which should improve road safety for other drivers and members of the public,” he added.

“Using technology to provide real-time data to employers about entitlement, validity, disqualifications, and endorsements would seem to be just another logical step to tighten the noose around those individuals determined to flout the law.”