Guidance

DVSA review 2024 terms of reference

Published 1 February 2024

Background

The Driver and Vehicles Standard Agency (DVSA) is an executive agency of the Department for Transport (DfT) which aims to keep Britain moving, safely and sustainably.

DVSA was established in 2013 following a merger of the Driver Standards Agency and Vehicle and Operator Service Agency. The DVSA is responsible for:

• theory and practical driving and riding tests
• approving people to be driving instructors and MOT testers
• carrying out tests to make sure lorries and buses are safe to drive
• carrying out enforcement checks on drivers and vehicles
• monitoring vehicle recalls

DVSA also works with the Traffic Commissioners for Great Britain to license and regulate the heavy vehicle industry. The DVSA role, including as a regulator, will evolve in the future as new technology, such as connected and autonomous vehicles, seek access to the UK’s roads.

The income of DVSA is derived primarily from fees for the services it conducts and oversees, in accordance with HM Treasury guidance and managing public money (MPM). DVSA also collects penalty fares and fines on behalf of HM Treasury. In the 2022 to 2023 financial year, DVSA’s total income was £407 million. DVSA also receives £21.7 million directly from DfT to fund enforcement activity and policy development.

Purpose

This review will align with the scope set by the Cabinet Office’s public bodies review programme and will:

• consider DVSA’s governance, accountability, efficacy and efficiency
• consider the extent to which DVSA is enabling wider government priorities, including service transformation objectives
• make recommendations to ministers to inform decisions on future delivery arrangements and efficiency savings

Scope summary

Efficacy

In addressing efficacy, considerations include:

• all current commitments and objectives and the extent to which DVSA has the clear and relevant mandate, capability and capacity to deliver them
• how the DVSA delivers its objectives for customers and stakeholders across the motoring sector now and in the future, including but not limited to preparations to take advantage of new technologies
• how the DVSA harnesses innovation to improve its services, ensures a sustainable and effective delivery model and achieves what is required to enhance individual and vehicle safety now and for the future

Governance

In addressing governance, considerations include:

• whether current powers and governance structures, including arrangements for reporting risk and financial management, are effective and support the realisation of opportunities to continuously improve

• the extent to which the board is effective in executing its responsibilities, holding the executive to account and its alignment with DfT’s strategic objectives

• the progress towards implementing relevant recommendations from the 2021 to 2022 Traffic Commissioners Review

Accountability

In addressing accountability, considerations include:

• the extent to which DfT’s sponsorship of DVSA is effective and in line with Cabinet Office arm’s length body sponsorship code of good practice and the current framework agreement between how DVSA works with DfT

• whether DVSA’s lines of accountability are clear and balanced across its guiding legislation and status as an executive agency, including the extent to which the DVSA is accountable to its customers, DfT for its performance and to Parliament

• the extent to which DfT and the DVSA engage with and consider relevant government functions and guidance where applicable

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 DVSA

• financial management arrangements in place, including the fees DVSA charge and whether DVSA’s financial model (built of statutory and commercial fee income and grant funding) is the right model for the future

• how the DVSA considers and implements measures to maximise efficiency, including its workforce plan and digitisation to take advantage of new and emerging technology while ensuring the resilience of the organisation and securing the capabilities required for the future

• the opportunities for DVSA to further enhance partnerships and collaboration with other public bodies, in particular the other motoring services agencies, in realising its objectives

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 Sarika Patel to lead the DVSA review. She will be supported by a review team within DfT.

Timing

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 DVSA’s board, its staff and management.

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