Young Drivers: Government Support

Pauline Latham Excerpts

Tuesday 20th February 2024 Westminster Hall

[Bill Esterson (Sefton Central) (Lab)]

It is a pleasure to see you in the Chair, Mrs Latham. On Thursday, it will be 40 years since I passed my driving test at the age of 17—this debate has been something of a trip down memory lane for a number of us. Passing my driving test certainly opened up a wealth of opportunities for me, as it has for so many other people.

The hon. Member for Upper Bann (Carla Lockhart) gave an excellent analysis of the many challenges faced by young drivers. She highlighted how being able to drive makes all the difference for young people in work and for those who are not easily connected by public transport. My constituency has a number of similarities with hers, with rural areas and a lack of public transport in places. We have the highest level of car usage in the country, in part because of those gaps in public transport.

Young drivers now have to wait 18 weeks for a driving test date. Those delays have very real consequences for young people who need to drive for work or to study. The Government promised action to reduce the wait, but they have failed to deliver. In October, the Transport Secretary told the House that the Driver and Vehicle Standards Agency had a plan to get within a target of nine weeks in the next few months, so perhaps the Minister can tell us why there are still long delays.

Alongside that backlog, young drivers face particular challenges with the cost of driving. That is especially true of the cost of insurance, which has increased by 98% for 17-year-olds, while average insurance prices have increased by 58% over the last year. The price increases in the UK have far outstripped those in the EU, where prices increased around 10% between the beginning of 2021 and the end of 2023; over the same period, the price almost doubled in the UK. Analysis from EY suggests that insurance premiums are expected to rise a further 10% in 2024.

Labour is committed to addressing these increases in insurance premiums if we are fortunate enough to form the Government in the coming months. We will consult industry and consumer groups on ways to crack down on unfair practices by insurers, such as lack of transparency over auto-renewals, the rise of hidden fees and the poor value of insurance products. We will also task the Competition and Markets Authority and the Financial Conduct Authority with investigating the high costs of insurance. When the CMA carried out a similar review in 2015, it found evidence of hidden fees. It is time for a further review. I hope the Minister will agree with me to that extent. By taking steps to tackle unfair practices and hidden fees, Labour’s plan could save young drivers hundreds of pounds per year by allowing them to choose the insurance policy that is right for them.

Turning to the link between claims and premiums for young drivers, Transport Minister Lord Davies told the House of Lords last month:

“Young male car drivers aged 17 to 24 are four times as likely to be killed or seriously injured compared with all car drivers aged 25 or over.”—[Official Report, House of Lords, 15 January 2024; Vol. 835, c. 221.]

The ABI tells us that claims are highest among young drivers, pointing out that in 2019 they made up 7% of all licence holders but were involved in 16% of fatal and serious crashes. These stark numbers explain why insurance premiums are higher for younger drivers and why improving safety is key to reducing insurance costs for young drivers. The ABI has previously recommended—[Interruption.]

[Mrs Pauline Latham (in the Chair)]

Order.

--- Later in debate ---

On resuming—

[Mrs Pauline Latham (in the Chair)]

Order. The sitting is resumed and the debate may now continue until 5.50 pm.

[Bill Esterson]

Thank you, Mrs Latham, for calling me again. I think that I had just said that the stark numbers explain why insurance premiums are higher for younger drivers—

[Mrs Pauline Latham (in the Chair)]

Order. Minister, we have started the debate. Thank you.

[Bill Esterson]

This could be the third time that I say this bit. The stark numbers explain why insurance premiums are higher for younger drivers and why improving safety is key to reducing insurance costs for young drivers.

As the hon. Member for Upper Bann mentioned, the ABI has previously recommended the introduction of a graduated driver’s licence and I am sure that Members would be grateful if the Minister provided an update on whether his Department is still considering such a policy. If not, what alternative measures are he and his colleagues taking to ensure the safety of young drivers?

Will the Minister also provide a timeline for the Government’s plan to publish the findings of their Driver2020 study, which aimed to test the effectiveness of a telematics approach using a mobile phone application rather than having to fit a black box? Again, I am sure that young drivers and the insurance industry would benefit from clarity on this point. The Minister will need no reminding that the last strategic framework for road safety was published in 2011 and that, although road fatalities fell by 50% when Labour was last in office, since then they have fallen by only 8%.

As a number of Members have mentioned, road safety is a particularly important issue for young drivers, who are more likely to be injured or killed on our roads. Road safety should be a top priority for Government, so it has been disappointing to see a lack of progress on this issue. Will the Minister tell us whether he plans to publish the long-promised update to the strategic framework for road safety?

The hon. Member for North Herefordshire (Sir Bill Wiggin) mentioned the speed awareness course. In a previous Westminster Hall debate, the Minister’s colleague, the Under-Secretary of State for Transport, the hon. Member for Hexham (Guy Opperman), told us that the Department of Transport’s own figures suggested that attendance of a speed awareness course reduces the likelihood of a driver being involved in a serious road traffic incident. Are the Minister and his colleagues considering the benefits of speed awareness courses? Are they considering making them part of the driving test to help to boost safety, not least among young drivers?

Finally, I thank the hon. Member for Upper Bann for securing the debate and for her excellent presentation. Supporting the Driver and Vehicle Standards Agency to reduce its backlog will help young people to get on to the roads, while cheaper insurance and promoting safer driving will help those who have passed. I agree that we should be supporting younger drivers and doing more to ensure their safety on our roads. I look forward to hearing the Minister’s analysis of the potential solutions that have been raised today.