Introduced in 1998 to store endorsement details which don’t fit on the photocard, paper counterpart licences will cease to be valid after this date and the DVLA will stop issuing them to new drivers, or for address changes and replacements.

In the meantime, the agency will develop an online system enabling real-time access to driver information to enable businesses to check details without the counterpart. These will be in addition to existing services, and only offered to selected users with the driver’s consent.

The BVRLA, which had advised the DVLA on the licence reform, has welcomed the news, saying it will enable its members to develop new licence checking processes and test them before the counterpart is abolished.

BVRLA Chief Executive, Gerry Keaney, said: ‘The DVLA finally has a clear plan of action for developing its online alternative to the paper counterpart, and we look forward to working with them in delivering a robust, cost-effective solution for the vehicle rental sector.’