DVLA services will not be removed from Post Office counters following fears rural residents would be the most impacted.

More than 100,000 people signed the National Federation of SubPostmasters’ petition to keep DVLA services within the Post Office network.

Sarah Dyke, Somerton & Frome MP, confirmed the agreement to the extension to their contract, settling widespread uncertainty about whether customers could renew their driving licence or pay their vehicle tax at Post Offices beyond March 2024.

The MP previously stressed the essential nature of Post Offices to rural communities during a Parliament debate in October.

She said: "Having met several postmasters in my constituency, and heard their concerns about the possible withdrawal of DVLA services, I’m delighted by this news.

“I was proud to lend my support to that campaign and to demand a rethink. I’m delighted that the Secretary of State has listened."

Ms Dyke also highlighted how crucial post offices are to her constituents, particularly in rural areas, affirming her commitment to ensuring they remain open and continue providing a comprehensive range of services.

The National Federation of SubPostmasters reports post offices handle six million DVLA transactions annually, with over half paid in cash at Post Office counters.