Driver and Vehicle Licensing Agency

3. Mr D complains about the service he has received from the DVLA. Mr D complains about the process for claiming a 50% Vehicle Excise Duty (VED) reduction for those entitled because they are in receipt of Personal Independence Payment (PIP). Mr D believes the process in place when he applied for the reduction in October 2023 places a greater burden on a disabled person than any other person taxing their vehicle.

4. Mr D also complains DVLA have not made any progress to improve the process since his previous complaint about the same matter in 2021. Mr D believes the current process breaches the Equality Act 2010.

5. Mr D has told us because of the different process he has to go through to claim the VED reduction he has to spend more time making his application. He also spends more time travelling as he cannot complete his application online. This also comes with an extra cost to make the application. Mr D says because the process takes longer it also causes him stress and anxiety as he does not know if his vehicle is going to be taxed correctly if DVLA have not processed his application by the time his previous tax is due to lapse.

6. Mr D would like DVLA to make service improvements to comply with equality laws and make it easier for disabled people to claim the 50% reduction they are entitled to. He would also like a financial payment to recognise the impact the added stress of the process and making his complaints has had on him.

7. If you receive the standard rate mobility component of PIP, you can claim a 50% VED reduction. The DVLA is responsible for administering the reduction in VED in the UK. They handle the processing of applications and the issuance of the reduced tax rates for eligible individuals.

8. To apply for a 50% reduction, you can only apply by post. You must complete a V10 application form, gather the relevant documents, then send all this information to the DVLA. There is currently no option to complete this process online. If you are claiming a 50% reduction you need to send the DVLA a certificate of entitlement to PIP. You must also provide the vehicle logbook, proof of insurance and a current MOT certificate.

9. On 10 October 2023 Mr D complained to the DVLA about the process for taxing his vehicle and claiming the 50% VED reduction that he can claim using the standard rate PIP mobility award. Mr D complained that he only received a reminder to tax his vehicle from the DVLA around four weeks before the tax was due, yet because the process to claim a discount is longer than the standard process this can take up to six weeks to complete. He also complained as the process is longer it places more of a burden on a disabled person, which is a breach of the Equality Act.

10. On 19 October 2023 the DVLA wrote to Mr D with its response to his complaint. It explained it does consider the potential effects on people as part of its processes, and it is aware the Equality Act 2010 requires it to make reasonable adjustment for protected characteristics and in this instance, it considered and evaluated the needs of disabled customers. It confirmed that whilst the service is currently not available online or at the Post Office, DVLA continue to review the existing process alongside other future developments.

11. The complaint reply also explained that if a customer needs to tax the vehicle urgently, they can do so online, over the phone or at a tax issuing post office by paying the full rate of tax. They can then claim a 50% refund by sending the required documents along with a covering letter. DVLA told Mr D it appreciates this is not always ideal, however, the option is available should you find yourself with limited time to complete a postal application and require the use of the vehicle.

12. On 14 November 2023, Mr D raised a further complaint. He told the DVLA he had received no response from the complaints he had raised in his calls and would want compensation for the time and administration of his complaint, and he would like to see immediate action taken to restructure the process of claiming the disabled tax discount.

13. On 21 November 2023 the DVLA wrote to Mr D in response to his latest complaint. The DVLA told him that there is currently no way for the DVLA and Department for Work and Pensions (DWP) to exchange data so customers must provide information to show they are eligible for the discount.

14. On 13 February 2024, as Mr D remained dissatisfied with how the DVLA dealt with his complaint, he asked it to escalate to the Independent Complaints Assessor (ICA). On 14 February DVLA confirmed it had agreed to forward Mr D’s complaint to the ICA.

15. In March 2024 the ICA issued its report in relation to Mr D’s complaint. It confirmed Mr D had made a similar complaint that it addressed in August 2021. ICA told him it could not make legal judgments about how the DVLA adhered to the Equality Act. It also told him that it cannot mandate how the DVLA organises its processes for customers in receipt of PIP. It did note that the DVLA had acknowledged the disparity between the service offered to disabled and non-disabled customers, and it did not dispute the extra burden when a customer wanted to claim the 50% discount.

16. On 6 June 2024, as Mr D remained dissatisfied with how DVLA had dealt with his complaints, he approached our Office via his MP.

Mr D complains the process in place when he applied for the 50% road tax discount in October 2023 places a greater burden on a disabled person than any other person taxing their vehicle.

And

DVLA have not made any progress to improve the process since his previous complaint about the same matter in 2021.

19. Before we decide if we should conduct a detailed investigation of a complaint, we look at whether there are signs the events complained about had a negative effect which the organisation has not put right. Having done so we have found the DVLA has already done enough to put right the impact of these events.

20. Mr D told us: ‘In the last ten years I have been getting the reduced car tax of 50% but the admin of it seems horrendous. Disabled people should not be burdened more than any other person to tax their vehicle. They provided me with a V11 (vehicle tax reminder) four weeks before my tax was due but told me it takes six weeks to process my tax application. I believe the DVLA is breaking equality laws to burden disabled people more than non-disabled’.

21. In its complaint replies the DVLA told Mr D: ‘Whilst no other process currently exists for individuals in receipt of the standard rate of PIP, I can assure you that the DVLA is committed to reviewing the current process and is working closely with the DWP on how data can be shared securely and appropriately between the departments. Once this has been established, technical developments will be considered for applications at the reduced rate to be accepted through other channels, like Post Offices. However, there is no date set for a change to this process’.

22. Then the ICA completed its report into Mr D’s complaint it told him: ‘I note the DVLA’s own acknowledgement of the disparity in the service offered to disabled and non-disabled customers, and no one reading this report could doubt that the arrangements for those in receipt of PIP are indeed burdensome. I share Mr D’s impatience with the current procedures and obviously hope that a more customer friendly system can be introduced as soon as possible’.

Our View

23. We can see that Mr D feels strongly that the current system in place to claim the 50% vehicle tax discount is harder than it should be. We understand that his frustration has grown over time as he first complained in 2021, and since then he has seen no improvement in the service.

24. We empathise with Mr D’s position in this complaint. Paying VED at the full rate can be done in a variety of ways, including by telephone or online, and you can make payments monthly by Direct Debit. Those who are entitled to the 50% discount must apply in writing, including paper documents, or they must pay the full rate then write to the DVLA for a refund. Monthly Direct Debit payments are not available. We can see why this is frustrating.

25. To ensure the discount is applied appropriately, the DVLA requires different information from PIP recipients than it does from those paying the full rate. Although we understand this seems difficult and laborious, the guidance contained in the Gov.uk DVLA guidance: ‘Financial help if you're disabled: Vehicles and transport’, clearly sets out the process you must follow to claim a 50% VED discount. In our view, the process as it stands appears to have evolved out of necessity rather than being designed to disadvantage disabled applicants.

26. The process for claiming a discount is different to when a customer applies for their VED paying the full price. The DVLA makes this clear in its guidance, as well as setting out who is eligible for the discount. This is in line with our ‘Principles of Good administration’ that say, ‘Public bodies should aim to ensure that customers are clear about their entitlements; about what they can and cannot expect from the public body’. Having said that, we can see from the information it provided the DVLA appear to be taking steps to improve its service and exploring what improvements it can make for disabled customers.

27. Mr D told us that he felt the DVLA’s processes in this case could amount of discrimination against its disabled customers. It is not within our remit to consider if a complaint meets the legal threshold for discrimination. We consider that seeking private legal advice or advice from the Equality Advisory and Support Service would be the appropriate course of action if Mrs P remains of the view that the DVLA may have acted in a way that constitutes disability discrimination in law.

28. Our concern is that it appears to customers the DVLA have made no progress to improve the system since Mr D first complained in 2021. From the guidance ‘Financial help if you're disabled: Vehicles and transport’ we can see this guidance has not changed much at all in this time. The guidance online now remains practically the same since at least the beginning of 2021.

29. We can see that there was limited progress in relation to making improvements to its service from when Mr D first complained in 2021. We can also see the complaint replies to Mr D following his complaints from 2021 and 2023 were very similar. Both explained the reasons the DVLA could not use the same process as a customer paying full price for their VED, but neither explained transparently what the DVLA were doing to attempt to rectify the situation. This led to more frustration for Mr D as it appears nothing has changed.

30. This appears to be an indication that the DVLA has failed to follow our ‘Principles of Good Administration’ that say: ‘Public bodies should be open and truthful when accounting for their decisions and actions’.

31. As this is the case, we also considered what actions the DVLA are taking to improve its service for its customers wishing to claim the 50% VED discount. We asked the DVLA for information in relation to the process it is going through to improve its service and address the current disparity. It told us it is currently in the process of implementing a fully digital service that would enable customers to use its online services when in receipt of disability benefits who are eligible for a 50% discount.

32. DVLA confirmed it has been trying to make changes to its systems, but when it initially tried to make changes, it discovered that it was not able to modify its current digital system to allow it to apply a 50% discount. It discovered the system could only apply an all or nothing exemption. This allows people who do not have to pay VED to show on the system as nil VED. This enables them to use the current digital system.

33. However, when the DVLA tried to use this system to apply a 50% discount it found its systems do not have any concept of a discount, and there is no way to add a flag or indicator to the system to show the customer is entitled to a 50% discount. As a result, it currently has no other way to process these applications other than them being handled manually by a DVLA clerk.

34. The DVLA also confirmed that it had been carrying out extensive work to assess the impact of changes to all its systems when making a full consideration of what changes it could make. In relation to this the DVLA have confirmed it has completed the process to make the following impact considerations: • extending the existing validations to check for additional disability awards • updating the shared VED Calculator, and all systems that use it • updating all DVLA licensing channels to include any new solution • moving VED Exemption interfaces and processing into a new exemption service that can be shared across channels • consideration / introduction of any necessary fraud checking, e.g. preventing a single disability award to be linked to multiple exemptions • refactoring of existing processes, reminders, notifications, casework and/or enforcement processes likely to be impacted by solution • extending finance reporting and reconciliation processes to account for 50% VED payments / refunds / recovery through all channels.

35. We can see from this information that the DVLA are fully exploring how it can implement any changes to the process and what impact this would have. We can also see due to the factors that need to be considered this has been a complicated process. We understand this has also been a long process and the DVLA have confirmed it has made significant progress.

36. The DVLA also told us: ‘In respect of a potential solution, the agency is exploring the feasibility of adding 50% PIP applications to its digital service.  If implemented, it will allow customers in receipt of 50% PIP to submit their applications digitally removing the need for them to submit applications via post. This service will allow customers to upload evidence of their entitlement.  Payment can then be made at the correct value (50%) by a DVLA agent over the telephone which removes the current process of customers providing cheques or paying for tax in full and then seeking a refund’.

37. The DVLA have confirmed to us that there is no delivery date for these proposed changes, but it is currently in the latter stages of the process, and it can confirm a potential delivery date for tact solution once it has completed the approvals and governance process. The DVLA have told us when any improvements to this system are announced it will publicise these and publish information on the Gov.uk website where customers can sign-up for updates on improvements to its digital service.

38. We can see Mr D remains unhappy that when the DVLA sent him a V11 vehicle tax reminder it only does so four weeks before the VED on his vehicle is due. We have considered if the DVLA have a duty to send the V11 form earlier than this. The DVLA guidance ‘Vehicle enforcement policy’ confirms it is the responsibility of the vehicle keeper to make sure that their vehicle is properly taxed. It also confirms non receipt of a V11 reminder is not considered a justifiable reason for failing to tax the vehicle.

39. There is no legal requirement for the DVLA to send you a V11 vehicle tax reminder. While they do send V11 reminders as a courtesy, the vehicle keeper is still legally responsible for ensuring they tax their vehicle on time, even if they don’t receive a V11 reminder.

40. The DVLA have confirmed it has no facility to change the V11 reminder process to be able to send reminders at different times to customers who may be eligible for a 50% discount. As the process for allowing customers to apply for the discount online is now in its final stages the DVLA have confirmed it has no plans to make changes to the reminder process as this issue will be resolved when it can accept discount application online.

41. We cannot say DVLA is doing anything wrong in not attempting to resolve this issue separately. If it did attempt to address this issue separately it would take considerable resources away from the main objective of completing the improvements to its service to enable customers to apply for the discount online or by telephone.

42. We can see it has considered the impact of this issue and decided that this will be resolved better by improving its service to customers and completing the change to a digital service. This does not appear to be unreasonable. We cannot say there are any indications of failings in the way the DVLA have considered this issue. Especially considering there is no legal duty on the DVLA to provide this service.

43. Considering all of the above, there are indications of maladministration as the DVLA have not been as transparent as it could have been in advising customers of the progress it was making to improve its service. We can see how this has caused Mr D added frustration and distress.

44. To establish whether the DVLA has done enough to put right the impact on Mr D, we reviewed what it has already done in line with our Principles of Remedy and Severity of Injustice Scale. Our principles state: ‘our underlying principle is to ensure that the public body restores the complainant to the position they would have been in if the maladministration or poor service had not occurred. If that is not possible, the public body should compensate them appropriately’.

45. Our severity of injustice scale sets out our view on the financial recommendations we think are both appropriate and proportionate for non-financial loss. An example is distress experienced by a complainant. In line with this, we believe Mr D is within level two of our severity of injustice scale. A level two injustice will typically arise when what has gone wrong has had a relatively low impact on the person affected. This will often result in a degree of distress, inconvenience or minor pain. We would normally recommend a payment between £120 and £550 for this level of injustice.

46. After considering the impact on Mr D we believe the apology and a financial remedy of £170.83 already provided by the DVLA for its poor service appears appropriate and proportionate. This is in line with the a level two injustice in our severity of injustice scale, so we can see the DVLA appears to have done enough to put right the impact to Mr D. The DVLA have confirmed what it describes in its complaint replies as poor service relates to the impact Mr D experienced whilst complaining, including the frustration he experienced due a lack of progress since his last complaint. As we consider DVLA’ actions to put this right are in line with our Principles of Remedy, we will take no further action.

47. We understand the frustration Mr D has told us about and can understand why he feels the current system is unfair. From the information we have found we can see the DVLA are making significant improvements to the current system that it is in the process of completing. We hope this gives Mr D some reassurance that improvements are on the way that will make a difference to how he is able to claim the 50% VED discount in the future.

1. We have carefully considered Mr D’s complaint about the Driver and Vehicle Licensing Agency (DVLA). We understand Mr D brought his complaint to us as he remained frustrated that DVLA have been telling him it is taking steps to improve its service, but he has seen no change in the current process despite previously complaining about the same issues. We are sorry to hear how the events Mr D has told us about have negatively impacted him.

2. After carefully considering all the evidence available to us, we have decided the DVLA has already done enough to put right the impact of these events on Mr D. We can see the DVLA have apologised to Mr D for the poor service he received. As well as offering a consolatory payment of £50, the DVLA also agreed not to seek the return of £120.83 which it had wrongly overpaid him in relation to a tax rebate, taking the overall financial remedy to a total of £170.83. The DVLA has also provided information to show it is taking steps to improve its services for customers. This means we will take no further action, and we explain below how we reached our decision in this case.