The reforms involve centralising the DVLA’s services, making more transactions available online and closing 39 regional offices.
It is believed that this will result in around £26 million year on year savings for the taxpayer.
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The organisation has said it hopes some of the staff based in the offices earmarked for closure will be able to relocate to its head office in Swansea. The closures will begin next year.
Mr Penning said: “The DVLA has been serving motorists for more than 40 years but times and customers’ needs change. That is why the agency continues to transform its services to give customers more choice and flexibility while offering best value for money for the taxpayer.
“These changes – developed after carefully listening to views expressed at consultation – will ensure that the agency delivers a smarter service to bring real benefits for the motor industry and every motorist in this country.
“I understand that the phased closure of the regional offices will come as a disappointment to those directly affected. I would like to thank the staff in these offices who have played an important part in DVLA service delivery over the years.”
DVLA chief executive Simon Tse said: “We are absolutely committed to delivering the best service we can. Our continued movement towards digital transactions and the greater use of other organisations to deliver services on our behalf will make it easier for motorists to deal with us in a way that suits them and also reduce significant burden on the motor industry and other stakeholders.
“A top priority for us now is to support our staff who work in our regional offices. We will do everything we possibly can to provide help and guidance during what are clearly uncertain times for them.
“We are working closely with the Public and Commercial Services union and those members of staff directly affected to explore all avenues, including possible relocation to Swansea or redeployment within the Civil Service.”
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