The fee for sitting the theory part of the driving test is to be reduced.
From October this year, candidates will pay £25 - a cut of £6 on the existing charge of £31, with a further drop, of £2, taking effect from October 2015.
Fees for motorcycles and other categories of vehicle will also be reduced.
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Driver and Vehicle Standards Agency chief executive Alastair Peoples said: "By agreeing new contract arrangements for the delivery of theory tests we have secured significant cost savings."