HL Deb 02 December 1991 vol 533 cc8-11

2.58 p.m.

Baroness Fisher of Rednal asked Her Majesty's Government:

Why they have introduced a charge to those over 70 years old, including the disabled, for the three-year renewal of their driving licences.

Lord Brabazon of Tara

My Lords, changes in the fees are necessary because the driving licensing system is required to be self-financing. The number of 17 year-olds who apply for the first provisional licences, and provide the main source of income under the present system, has steadily decreased over the past three years and is projected to go on doing so for some time to come, while the number of 70 year-olds has increased.

Drivers aged 70 and over issued with licences for periods of one or two years, for medical reasons, will pay the renewal fee only every three years. Any necessary medical investigations remain free of charge to the driver.

Baroness Fisher of Rednal

My Lords, I thank the noble Lord for that reply. According to the licence application form, the medical renewal is still free for the under-70s and costs £6 for the over-70s. Does that not show discrimination against age? Will the Minister tell us how much money the charge to old-age pensioners of 70 or over will raise to cover the deficit to which he referred?

Lord Brabazon of Tara

My Lords, as I indicated in my original Answer, the problem is that there is an ageing population in this country. Over the past four years over quarter of a million more people aged 70 or over have applied for licences, whereas the number of 17 year-olds in the population has gone down by 17 per cent. in the past three years, and that is set to continue for at least the next five years. Therefore we felt that it was only fair to ask the over-70 age group at least to pay something towards renewing their licences. We expect income from that group to be approximately £3.3 million.

Lord Mellish

My Lords, I declare a public interest; I am over 70. I shall apply for a renewal licence next February. Do I understand from the Minister that I have to pay for the privilege of having a licence? I have had a car for about 50 years—though of course it is not the same car—and I have been driving for about 50 years. Would it not be better for the Minister to say to those over 70—that includes most Members of this House—"If you drive you pay"?

Lord Brabazon of Tara

My Lords, I realise that the age profile in this House may not be typical in relation to the rest of the country. I regret to have to tell the noble Lord that from next February, yes, he will have to pay £6 to renew his driving licence for three years. That works out at £2 a year, which is rather less than the price of a gallon of petrol.

Lord Hailsham of Saint Marylebone

My Lords, will ray noble friend explain the logic of the system? While I accept that the system must pay for itself, why, because there are more 70-plus year-olds and fewer 17 year-olds, should the 70 year-olds pay a higher fee? Should the fee not be spread population-wide?

Lord Brabazon of Tara

My Lords, 17 year-olds' fees are also increasing from £17 to £21 at the same time. In other words, they will pay a great deal more than 70 year-olds. Had 70 year-olds not had to pay anything, the 17 year-olds would have had to pay about £25. As a result of the decrease in the number of 17 year-olds, they would have to pay about £30 in two years' time.

Baroness Seear

My Lords, the Minister refers to 17 year-olds and 70 year-olds. Why pick on us?

Lord Brabazon of Tara

My Lords, because until the age of 70 one keeps the same licence. One pays once for a licence which lasts until the age of 70. After the age of 70 one has to renew one's licence every three years

Lord Underhill

My Lords, as one aged 77, I declare an interest in this Question. However, does the matter arise because driver and vehicle licensing was transferred to an agency whose sole interest, frankly, is revenue? Is that a matter of which we should take notice? We understand that a large number of organisations were consulted. Will the Minister state the nature of the organisations and the results from the consultations? Is it not strange that little publicity has been given to the matter? I usually keep a thorough record of communications from the Department of Transport. In this case a press notice was issued; and little attention seems to have been paid to it.

Lord Brabazon of Tara

My Lords, I assure the noble Lord that it is not because the DVLA has become an agency. Since 1980 the DVLA has been obliged to balance its books, if I may so express it. Last year there was a shortfall of, I believe, about £5 million. Therefore it was essential to make some adjustments to the fees. That is why the fees that I have outlined will come into force next February.

With regard to publicity, in April of this year the department issued a press notice proposing the new fees. A consultation period followed in which 150 organisations were sent the consultation paper. Only 17 written responses were received. We published the result of that consultation in September by way of another press notice.

Lord Ezra

My Lords, will the noble Lord agree that it is one of the most extraordinary propositions that has ever come before the House? Are we unique among European countries in adding to the charges for older people?

Lord Brabazon of Tara

My Lords, I believe that it is an issue on which we may be able to make up our own minds, whatever they may do elsewhere in Europe. One ought to put the matter into perspective. Instead of those who renew their licences at the age of 70 for three years obtaining the licence free, they will have to pay £6. That is just £2 a year.

Baroness Fisher of Rednal

My Lords, one appreciates what the noble Lord said about balancing the books. However, does he agree that the same agency raised several millions of pounds by selling cherished number plates? It is now already advertising the new list of cherished number plates. Could such sales not have saved the money of the old-age pensioners?

Lord Brabazon of Tara

My Lords, certainly money has been raised by the sale of number plates. However, the issue of driver licences is a separate matter. That body has to balance its books on its own.

Lord Underhill

My Lords, the noble Lord referred to the charge of £6 at the age of 70. Is it not made quite clear in the press release on 3rd September that that applies not only to those who reach the age of 70 but to each time one renews the licence? I am now 77. Therefore I should have had to pay three times.

Lord Brabazon of Tara

My Lords, it would be only once every three years.

The Countess of Mar

My Lords, how does the DVLA reconcile the charges? A person of 17 receives 53 years-worth of licence for under 50p a year while someone over 70—and I support my noble friends who are over 70—has to pay £6, which is £2 a year.

Lord Brabazon of Tara

My Lords, it is because up to the age of 70 drivers do not have to renew their licence whereas at the age of 70 they do.

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