Corporate report

Driver and Vehicle Standards Agency business plan, 2015 to 2016

Published 26 March 2015

Applies to England, Scotland and Wales

Chief Executive’s foreword

Thank you for taking an interest in the Driver and Vehicle Standards Agency (DVSA) plan for 2015 to 2016. Over the last year the agency has gone through a period of significant change. We have:

• formed a new agency by merging the Driving Standards Agency and the Vehicle and Operator Services Agency
• formed a new board of directors and non-executive directors
• started to develop new ways of working to make sure that the customer is at the heart of everything we do

In 2015 to 2016 we will take the next steps to strengthen the new agency by establishing our new trading fund and implementing a number of projects that will set the course for us for some time to come. We will also celebrate the 80th anniversary of the driving test.

Our plans for 2015 to 2016

A prime focus for this year will be to continue developing our services to meet the changing needs of our customers.

We will work on a range of potential improvements to the driving test – with the aim of making it better suited to everyday driving. We’ll also ask the public for feedback on our plans to make motorcycle training better for learner riders.

We have piloted a more flexible way of providing annual vehicle tests at authorised testing facilities (ATFs). We call this ‘next generation testing’ - or ‘NGT’. As well as providing a modern and efficient service for business by offering 24/7 testing, it lets our staff earn a valued industry recognised qualification - the Vehicle Inspection Programme Quality Assured Award. This year we will roll out NGT to a much greater number of ATFs.

We want to reduce the enforcement burden on those who operate their businesses in a compliant way. We will begin to implement a new approach to enforcement this year that ensures compliance equates to good business value and non-compliance is no longer a cost effective option. We will develop the approach in consultation with our stakeholders, including industry.

2015 will also see the roll-out of a new MOT IT system to around 22,500 garages. A new web-based application will build on and improve the system we already have. It will be easier to use and maintain, and deliver improvements for us and the MOT trade.

Reduced costs

Last year we cut the cost of car theory tests to £25 – a reduction of £6. We will reduce the cost of this test again in October 2015 by a further £2.

Award winning customer service

This year we will seek to retain our Customer Service Excellence Award and our Customer Contact Centre Accreditation. We are committed to delivering a high standard of customer service that makes it easier for people to do business with us.

We performed well last year and I would like to thank our staff for continuing to deliver a high standard of service while we consolidated the new organisation.

This year we will continue the transformation of our services, led by a new board and senior management team. I know that the hard work and dedication of all of our staff will mean we continue to offer excellent customer service as we make sure we realise the benefits of a focused and dynamic agency. I look forward to working with you in the coming year.

A Peoples
Chief Executive

1. Who we are and what we do

The Driver and Vehicle Standards Agency (DVSA) is an executive agency of the Department for Transport (DfT).

1.1 What we do

We improve road safety in Great Britain by setting standards for driving and motorcycling, and making sure drivers, riders, vehicle operators and MOT garages understand and follow roadworthiness standards. We also provide a range of licensing, testing, education and enforcement services.

We provide modern and efficient services which:

• meet the changing needs of business and the public
• help keep people safe
• protect the environment

We’ll do this by setting clear standards for safe driving and vehicle safety and putting the customers at the heart of everything we do.

1.2 Services we provide

The services we provide include:

• improving driving competency through:
  • developing, publishing and reviewing evidence-based standards for:
    • driving and riding
    • driver and rider training
    • remedial programmes, like drink-drive rehabilitation
  • developing and carrying out driving and riding tests and assessments fairly, consistently and efficiently
  • regulating standards and maintaining the integrity of the statutory registers of approved driving and riding instructors and the Driver Certificate of Professional Competence (CPC)
• making sure commercial vehicle operators, drivers and vehicles meet roadworthiness standards and road safety regulations
• taking enforcement action against theory and driving test candidates, instructors, trainers, operators, garages or commercial drivers who don’t comply with rules and regulations or fail to meet standards

2. Plans for 2015 to 2016

Reform

DVSA measure	2015 to 2016 objective
As part of our strategy to reduce our overall estate, to have marketed and/or sold 30 premises	By 31 March 2016
Complete the switch-over of all MOT garages to the new MOT testing service	By September 2015
Maintain or improve the take-up of digital services	90%
Complete the practical test phase of the research on possible enhancements to the practical car driving test	By 31 January 2016

Operational

DVSA measure	2015 to 2016 objective
Conduct 95% of lorry, bus and coach annual tests at non-DVSA sites	By 31 March 2016
Honour DVSA-confirmed reservations at ATFs	95%
Offer candidates an appointment at their preferred theory test centre within 2 weeks of their preferred date	95% of candidates
Theory test candidates are satisfied with the overall level of service they have received	90%
Annual average waiting time for car practical tests	No more than 6 weeks
Maintain levels of satisfaction with the new MOT testing service	87%
Demonstrate the effectiveness of our targeting on non-compliant lorry operators and drivers by achieving an overall prohibition rate at targeted checks that is higher than the rate found through random compliance checks	12 percentage points higher
Develop and shadow run a new compliance measure in response to consultation	By 31 October 2015
Retain Customer Service Excellence accreditation	By 31 March 2016

Finance and efficiency

DVSA measure	2015 to 2016 objective
Deliver financial performance of a break-even position for the year	At 31 March 2016
Deliver efficiency savings	£9 million
Full time equivalent (FTE) numbers as at 31 March 2016 will be no more than	4,470
Ensure the average number of working days lost due to sickness does not exceed	7 days

Customer service

DVSA measure	2015 to 2016 objective
Customer complaints: reduce by 10% the number of complaints not resolved at first contact compared with 2014 to 2015 outturn	By 31 March 2016
Prompt payment: payment of invoices within 5 working days	80%
Freedom of Information: provide a response within 20 working days	93%
Parliamentary questions: provide a response within due date	100%
Parliamentary correspondence: provide a response within 7 working days	100%
Official correspondence: provide a response within 20 working days	80%

2.1 Testing and inspection

Performance measures for 2015 to 2016

Our testing and inspection performance measures are to:

• complete the practical test phase of the research on possible enhancements to the practical car driving test by 31 January 2016
• offer 95% of candidates an appointment at their preferred theory test centre within two weeks of their preferred date
• have at least 90% of theory test candidates are satisfied with the overall level of service they have received
• have an annual average waiting time for car practical tests no more than 6 weeks
• conduct 95% of lorry, bus and coach annual tests at non-DVSA sites by 31 March 2016
• honour 95% of all DVSA-confirmed reservations at ATFs

We monitor the standards and safety of motoring in Great Britain and are responsible for:

• theory and practical driving tests for car, lorry, bus and coach drivers and motorcycle riders
• statutory annual testing of lorries, buses and coaches and a range of other specialist vehicles
• collision and safety defect investigations and vehicle recalls

Current processes for driver and rider testing, trainer qualification and quality assurance contribute to Great Britain having some of the safest roads in the world.

2.1.1 Improving the driving test

Newly qualified drivers continue to give some cause for concern. Some tell us that they don’t feel that the driving test prepares them adequately for driving independently after they’ve passed.

In 2015 to 2016 trials and research will be undertaken to:

• determine the need for any changes to the practical car driving test and to support any proposals for change with evidence
• evaluate the benefits of any subsequent changes that DVSA may consider making

Any proposed changes will be subject to public consultation.

2.1.2 Better training for motorcycle riders

Motorcycle riders remain disproportionately more likely to be killed or seriously injured. They represent just 1% of road users but 19% of road user deaths.

All learner motorcycle riders must complete compulsory basic training (CBT) before they can ride on the road. Research was commissioned by DfT in 2014 to find out more about the experiences of those providing and taking CBT. The final report, published in December 2014, helped inform proposals to:

• review the way CBT is delivered, review the standards checks arrangements for CBT, revise the qualification process for CBT instructors and explore other opportunities to improve the standard of motorcycle training, working in partnership with stakeholders
• plan to respond to the consultation, launched in March 2015, to gather views and opinions on the proposals for change - our aim is to strengthen and modernise the way that people learn to ride

2.1.3 Theory test

In 2013 we awarded a new call-off contract with learndirect for the driving theory test service under the Crown Commercial Service’s framework contract to provide computer-based testing for government.

This contract enabled us to reduce the test fee from £31 to £25 in October 2014. We will deliver a further fee reduction of £2 in October 2015.

In 2015 to 2016 we will be planning for transition to the new contract which is to be delivered from September 2016.

2.1.4 Lorry, bus and coach testing

Our programme of taking lorry, bus and coach testing closer to the customer has been a huge success with 90% of lorry, bus and coach tests being carried out within a network of around 480 ATFs by early 2015.

Building on this success, we recognise the importance of identifying ways to offer further flexibility in how we deliver testing to an ever changing industry. Our NGT model provides a modern and flexible testing service designed to meet industry requirements, eg through providing the option of 24/7 testing and one central point of contact for bookings and queries.

During 2015 to 2016 we will start a 2-year rollout of NGT and deliver flexible testing services to a much greater number of ATFs as part of the rollout plan.

2.1.5 Working with others

We’ll also work with DfT and other government organisations to:

• close the Vehicle Identity Check scheme by October 2015
• start to remove the agreed roadworthiness testing exemptions of certain vehicles following consultation
• start to modernise annual test processes to meet Directive 2014/45/EU^{[footnote 1]}
• continue to update annual vehicle testing by introducing a simpler headlamp aim test (HGV/PSV/MOT), removing secondary brake checks (HGV/PSV) and simplifying the standard for drivers’ view of the road ahead (HGV/PSV/MOT)
• help the United Arab Emirates’ Department of Transport in Abu Dhabi to improve its vehicle testing system - this will include providing training expertise so it can develop and provide a programme of training to its staff
• research how telematics (black box technology) can change the behaviour and attitudes of learner drivers
• work to enable a more flexible fee structure, such as time based charging, following Royal Assent of the Deregulation Act 2015

Facts and figures about testing and inspection

1. 1.9 million car theory tests and 1.6 million car practical driving tests carried out annually
2. 74,000 motorcycle theory tests carried out annually
3. 59,000 motorcycle off-road tests and 57,000 motorcycle on-road tests carried out annually
4. 700,000 lorry, bus and trailer tests carried out annually
5. First time pass rate for lorries at 78% in 2013 to 2014
6. Over 200 safety recalls launched in 2013 to 2014 involving over 1.1 million vehicles
7. 97% digital take up for theory tests

2.2 Enforcement

Performance measures for 2015 to 2016

Our enforcement measures are to:

• demonstrate the effectiveness of our targeting of non-compliant lorry operators and drivers by achieving an overall prohibition rate at targeted checks that is at least 12 percentage points higher than the rate found through random compliance checks
• develop and shadow run a new compliance measure in response to consultation by 31 October 2015

2.2.1 Compliance

We want the industry we regulate to comply with rules and regulations - whether it’s related to the practical driving/riding test or to commercial drivers and operators.

We aim to:

• coach and help those who want to be compliant
• target and carry out enforcement action against those who intentionally choose to be non-compliant

Our priorities include:

• developing a plan for next generation enforcement (NGE) which will allow us to exploit opportunities to improve operational efficiency, and enhance both operator experience and organisational capability for effective and efficient enforcement
• responding to the findings of a review of the roadside enforcement process, including consideration of recommendations for more immediate changes to improve efficiency and effectiveness of current operations, and to inform the development of the NGE plan

2.2.2 Working with others

We’ll also work with DfT and other government organisations to:

• start to modernise roadside inspection processes to meet Directive 2014/47/EU
• support DfT in drafting legislation and operational policy in relation to the introduction of fixed penalty notice/financial deposit procedures for historical drivers’ hours offences
• change our operations to accommodate the EU tachograph regulation which introduces changes to checks and audits on authorised tachograph centres by March 2016
• support DfT in developing options to introduce new powers to improve sanctions for increased deterrence in commercial vehicle compliance
• pilot joint working initiatives for improved data sharing and better use of resources with other government agencies and public bodies such as Highways England, the Home Office, Transport for London and the police
• implement the necessary changes to our enforcement sanctions policy documentation and operational instructions to accommodate the new ‘Very Serious’ and ‘Serious’ Infringement classifications introduced by new EU regulatory requirements

Facts and figures about enforcement

1. Over 450 fixed penalties issued for failure to produce Driver CPC records between April 2014 and January 2015
2. Cumulative lorry prohibition rate of 27% at targeted checks from April 2014 to January 2015
3. 3.6 million tachograph records checked between April 2014 and January 2015
4. 814 investigations into driver impersonation / ID fraud annually
5. 115 investigations into illegal driving instruction annually

2.3 Licensing and authorisation

We’ll make sure that those who have licences for a range of schemes comply with relevant rules and regulations. We’ll deal with poor standards and non-compliance efficiently and effectively.

2.3.1 Improving standards

We aim to:

• raise the training standards of approved driving instructors (ADIs) through the ADI standards check, which assesses an ADI’s ability to teach effectively
• carry out work to improve the ADI qualification process by replacing the ADI part 3 test of instructional ability with the standards check; we’ll also work with the industry to see how potential instructors can best get valuable on-road experience and be assessed whilst training a pupil
• work with ADIs to create a clearer process by which we can better target those who are most likely to not comply with regulations or whose standards are poor
• deliver a phased replacement business system, the operator licensing compliance system (OLCS), to support goods and passenger vehicle operator licensing and operator self-service on behalf of the Traffic Commissioners for Great Britain and the Northern Ireland Transport Regulator

2.3.2 Working with others

We will also work with DfT and other government organisations to progress (to implementation) stages of the reduction in the current exemptions of certain vehicles to operator licensing.

Facts and figures about licensing and authorisation

1. Over 5,000 new licence applications processed annually for goods vehicle operators
2. Over 700 new licence applications processed annually for bus and coach operators
3. Over 3,700 bus permits issued annually
4. Approximately 10,000 standard checks on ADIs undertaken annually

2.4 Advice, information and education

The government is becoming digital by default. By digital by default, we mean digital services, including the provision of information, advice and guidance, that are so straightforward and accessible that all those who can use them will choose to do so, whilst those who can’t are not excluded.

Our priorities during 2015 to 2016 are to:

• develop and extend our use of social media and digital channels to talk to and involve our customers and the industry
• explore how we can help top grade ADIs to promote their higher level of competence to consumers
• work with DfT to review options to modernise The Highway Code and if appropriate, consult on the different options
• engage proactively with international counterparts via the International Commission for Driver Testing (CIECA), Euro Controle Route, International Motor Vehicle Inspection Committee and the Confederation of Organisations in Road Transport Enforcement to ensure that Great Britain influences policy discussions and initiatives on road safety

Facts and figures about advice, information and education

1. Over 55,000 subscribers to the Matters of Testing blog about the MOT
2. Over 17,000 subscribers to ATF e-bulletins
3. Over 74,500 followers of The Highway Code on Facebook and Twitter
4. Over 27,000 fans of ‘I can’t wait to pass my driving test’ on Facebook

2.5 MOT

Performance measure for 2015 to 2016

Our MOT performance measures are to:

• complete the switchover of all MOT garages to the new MOT testing service by 30 September 2015
• maintain levels of satisfaction with the new MOT testing service at 87%

We regulate the MOT scheme. We do this by:

• setting and administering appropriate entry level criteria for the scheme
• providing information, driven by user needs, that best ensures that garages are able to conduct high quality testing
• conducting enforcement activities that are focused towards those that present greatest risk of conducting poor quality or fraudulent testing – which compromise road safety and/or undermine public confidence in the fairness of the service
• taking proportionate disciplinary action towards those that fail to comply to ensure against repeat or continued offending

2.5.1 MOT testing services

This year we will focus on moving to the new MOT testing service. This will give us a platform to modernise the MOT scheme in the future.

In particular, we aim to:

• support the MOT trade through the move to the new service, and ensure that the impact on their businesses is kept to a minimum
• make incremental improvements to the new MOT testing service to ensure that it best meets user needs
• work with DfT, the MOT trade and consumer groups to develop options for how we can direct efficiencies from the new MOT system to improve the robustness of the MOT scheme - including in compliance work to tackle fraud
• refine plans for the modernisation of MOT training and development^{[footnote 2]}

Facts and figures about the MOT

1. Reduction of 33% in the number of MOT garages in the highest risk segment between April and December 2014
2. Almost 58,000 nominated testers (NTs) regulated and around 4,800 new NTs trained annually

3. Supporting delivery of the plan

Performance measures for 2015 to 2016

The performance measures for 2015 to 2016 to support the delivery of our plan are to:

• deliver financial performance of a break-even position for the year at 31 March 2016
• deliver efficiency savings of £9 million
• as part of our strategy to reduce our overall estate, to have marketed and/or sold 30 premises by 31 March 2016
• have full time equivalent (FTE) numbers as at 31 March 2016 no more than 4,470
• ensure the average number of working days lost due to sickness does not exceed 7 days
• retain Customer Service Excellence Accreditation

3.1 Finance and efficiency

From April 2015 DVSA will have a single trading fund. We plan to balance our costs against our income and deliver a break-even performance for the year.

We’ll improve efficiency in a number of areas. In particular we aim to:

• reduce the cost of our back office by moving to single structures for many of the corporate services including finance, HR, estates and ICT
• realise savings from optimising the use of our property estate and releasing those parts we no longer need
• improve and standardise arrangements for staff management that will contribute towards reductions in sickness absence and improved productivity
• manage the transition to new processes and new ways of working for HR, finance, procurement and payroll services through the centralisation and standardisation of support functions following migration to a new shared services platform
• continue to use LEAN tools and techniques when embedding a continuous improvement approach across the organisation

3.2 Equality, diversity and inclusion

We are committed to promoting and embedding equality, diversity and inclusion across the whole of the agency.

We plan to work with our newly formed staff network groups, our trade unions and diversity champions to help identify any barriers faced by people with protected characteristics which are age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation. We will put plans in place to overcome any barriers these people face.

We will undertake a review of driving examiner recruitment in order to identify any barriers to the recruitment of a diverse workforce which is reflective of our customers and take steps to remove any barriers identified.

We will continue to support government initiatives around recruitment, like apprenticeship and student placement schemes.

3.3 Sustainability

We strive to be a sustainable organisation, positively engaging with our staff and communities to help to protect and enhance the environment.

One of the benefits of taking lorry, bus and coach testing to ATFs is that there are significantly fewer journeys of commercial vehicles travelling to DVSA sites for their annual test. This is one of many ways that DVSA is transforming its business to improve customer convenience while reducing environmental impact.

We will continue to embed sustainability across our estates and operations in line with the government’s vision for a stronger greener government in terms of reducing carbon, overall water consumption and waste.

We will continue to recognise the value that ecosystem services provide and actively engage with contractors to ensure that goods and services purchased on our behalf meet our and our customers’ needs.

3.4 Customer service

We monitor a number of our customer-facing services through the Cabinet Office’s Customer Service Excellence accreditation. This accreditation provides evidence that we deliver excellent customer service. It also provides assurance to customers, the press and trade associations that we do ‘put the customer at the heart of what we do.’

Customer Service Excellence makes clear those organisations that are efficient, effective, excellent, equitable and empowering. We have achieved this accreditation every year since its introduction in 2008 and we hope to keep it in future years.

4. Digital

Performance measures for 2015 to 2016

Our digital performance measures for 2015 to 2016 is to maintain or improve the take-up of digital services of 90%.

In line with the government’s digital agenda we aim to work more effectively in partnership with customers, stakeholders across industry and government to provide information and tools that are clear and accessible.

4.1 Information technology (IT) services

This year we will change the way we are provided with IT. New arrangements will be put in place from 2015.

We aim to build the knowledge and capability of the Digital Services and Technology team to support the organisation in business as usual and new activities. This will involve the creation of a capability to be a digital systems integrator as per Government Digital Service standards.

4.2 Becoming digital by default

As well as other related initiatives in this plan, we will:

• deliver a new IT solution that supports MOT testing and incrementally switch MOT garages to this new MOT testing service by September 2015, to allow for the decommissioning of the current service
• investigate options for extension of the online services available for the broader MOT service - including, for example, online applications for new MOT businesses and testers
• work with the Government Digital Service to ensure that the MOT testing service meets the Digital by Default Service Standard
• continue to deliver an ongoing programme of continuous improvements for high-volume citizen and business facing digital services including practical driving test booking and the recording of periodic training for Driver CPC
• progress an online booking system for the standards check so that ADIs can choose a time and date that suits them and their pupil
• deliver a new digital service for online applications for licences to Traffic Commissioners for Great Britain and the Northern Ireland Transport Regulator
• support DfT in exploring the feasibility of options around making bus registration 100% digital in 2015 to 2016

Annex A: financial forecasts

Financial forecast: income

Category	Forecast outturn 2014 to 2015	Business plan 2015 to 2016
Statutory income	£344,000,000	£333,400,000
Non-statutory income	£31,800,000	£27,500,000
Other income	£13,200,000	£10,200,000
Total income	£389,000,000	£371,100,000

Financial forecast: expenditure

Category	Forecast outturn 2014 to 2015	Business plan 2015 to 2016
Salaries	£163,700,000	£162,300,000
IT MOT costs	£19,600,000	£17,500,000
Theory test charges	£35,600,000	£32,100,000
IT charges	£22,200,000	£30,500,000
Other non-pay costs	£56,700,00	£61,100,00
Rent and rates/accommodation	£30,700,000	£24,500,000
Depreciation/surplus on disposal/impairments	£24,100,000	£24,600,000
Contingency	£0	£6,000,000
Total	£352,600,000	£358,600,000

Financial forecast: overall surplus/(deficit)

Category	Forecast outturn 2014 to 2015	Business plan 2015 to 2016
Operating surplus	£36,400,000	£12,500,000
Interest receivable	£300,000	£400,000
Interest payable	(£8,000,000)	(£8,900,000)
Dividend	(£4,200,000)	(£4,000,000)
Overall surplus/(deficit)	£24,500,000	£0

Annex B: workforce and agency finance

Workforce

Measure	Business plan 2015 to 2016
FTE staff numbers as at 31 March 2016 no more than	4,470

Agency finance

Measure	Business plan 2015 to 2016
Deliver financial performance	£0
Deliver efficiency savings	£9 million

Annex C: volume forecast

Volume forecast: driving tests

Category	Forecast outturn 2014 to 2015	Business plan 2015 to 2016
Car theory test	1,900,000	1,950,000
Car practical test	1,593,000	1,640,000
Motorcycle theory	73,500	78,000
Motorcycle module 1	59,000	63,000
Motorcycle module 2	57,000	61,000
Vocational theory multi choice questions	60,000	70,000
Vocational theory hazard perception test	53,000	60,000
Vocational practical tests	93,000	102,000
Driver CPC module 2 – theory	43,000	50,000
Driver CPC module 2 – practical	23,500	30,000
ADI part 1 – theory	6,000	6,500
ADI part 2 and 3 (driving and instructional ability)	8,000	8,500
Taxi	22,000	23,000

Volume forecast: vehicle tests

Category	Forecast outturn 2014 to 2015	Business plan 2015 to 2016
Heavy goods vehicles (HGVs)	475,620	477,630
HGV trailers	253,120	255,020
Public service vehicles (PSVs)	89,870	89,870
Vehicle approval	17,630	23,630
Certificate of Initial Fitness	1,100	1,100
Vehicle Identity Checks	80,000	33,000
Other testing and inspections	20,210	20,200

Volume forecast: operator licensing

Category	Forecast outturn 2014 to 2015	Business plan 2015 to 2016
HGV	30,240	29,680
PSV	1,260	1,330
Other licensing	15,930	15,640

Volume forecast: MOT

Category	Forecast outturn 2014 to 2015	Business plan 2015 to 2016
MOT	28,891,000	28,891,000

1. The 2014 roadworthiness package consists of 3 EU directives:

   • 2014/45/EU Periodic Test Inspection
   • 2014/46/EU Registration of vehicles
   • 2014/47/EU Roadside Inspections

   Implementation dates range from May 2017 for the necessary legislation to be in place and May 2023 for alignment of facilities and equipment. The majority of the changes that affect DVSA will need to be in place by May 2018. ↩

2. The aim is to move to a model where DVSA, in agreement with industry, will publish a set of Occupational Standards, broken down into learning modules which will then become the basis of a ’regulated’ qualification that has an assessed outcome, such as a National Vocational Qualification (NVQ) or Quality Assured Award, which will sit within a framework administered by an awarding organisation. ↩