UK driving school crisis: How smart operators can turn 24-week waits into 5-figure profits

The UK driving instruction industry is under pressure like never before, but behind the crisis lies real opportunity. 

According to The Guardian, average driving test wait times have surged to 20 weeks, up from 14 weeks last year, with three-quarters of Britain’s 319 test centres now maxed out at 24-week waits. Transport Secretary Heidi Alexander recently called the delays “totally unacceptable” and urged the DVSA to take immediate corrective action.

While the challenges are real, forward-thinking driving schools and instructors have a unique chance to grow. With smart strategies like premium pricing, tech-driven scheduling, and adopting modern payment solutions that cut costs by up to 80%, this crisis could be the turning point for your business.

In this article, we explore how UK driving schools can not only survive but thrive by adapting to market shifts, embracing new technology, and meeting rising demand more efficiently.

DVSA driving test backlog: What's being done to fix it?

The UK’s driving test system is stretched to its limits. Despite the DVSA conducting a record 1.92 million tests in 2024, average waiting times have worsened, now up to 20 weeks, with many centres booked out for the maximum 24 weeks.

In response, Transport Secretary Heidi Alexander labelled the delays “totally unacceptable”, and called for urgent corrective action. To tackle the crisis, the government is rolling out 10,000 extra test slots each month through examiner overtime and additional training.

But perhaps most importantly, the DVSA has now launched a national recruitment campaign to hire new driving examiners across Great Britain, a move seen as crucial to restoring balance to the system.

However, the target of reducing waits to seven weeks has already been pushed back to summer 2026, meaning the disruption will likely continue for another 18 months or longer.

Opportunity for driving schools: This long-term imbalance supports predictable demand, more student retention, and premium pricing strategies, especially for those able to streamline bookings and improve operational efficiency.

Why is the driving instructor shortage getting worse?

The strain doesn’t stop at testing. The UK is also facing a worsening shortage of Approved Driving Instructors (ADIs), with a 10% decline over the past decade. It’s not just retirements either, the instructor training pipeline is under pressure.

Trainees face delays in securing test dates, making it difficult to qualify within the required two-year window. One instructor, for example, had a last-minute exam cancellation and had to wait another four months to rebook, not uncommon in the current system.

Elwyn Marfell-Jones, a driving school owner in Swansea, warns that things could reach a “grinding halt” unless bottlenecks in the qualification process are addressed.

There’s also a wider challenge: increasing entry costs and lack of diversity. For instance, there remains a notable shortage of female instructors, limiting learner choice and industry balance.

Bots and booking scams: How the driving test system is being exploited

The system is also being exploited. Automated bots are snapping up test slots and reselling them to desperate learners, an issue likened to ticket scalping.

Ruth Cadbury, chair of the Commons transport committee, called it “shocking”. While the DVSA introduced a seven-point plan in late 2024, including restrictions on instructors booking tests for learners they don’t teach, industry insiders like Lynne Barrie remain cautious, warning that without root-level reform, these efforts may fall short.

To reinforce system integrity, the DVSA has also rolled out:

•  A new integrated BSL (British Sign Language) booking tool to make theory tests more inclusive for Deaf learners.
• A public warning on a spike in fake or “ghost” MOT certificates, stressing the need for verified digital documentation across the industry.

These broader moves show the DVSA is not just firefighting, but also addressing deeper issues in access, diversity, and trust across the driver education and licensing system.

The silver lining: How the crisis can improve instructor earnings

The supply shortage in the UK driving industry has dramatically shifted the economics of driving instruction. According to a recent DVSA survey, hourly lesson rates now typically range between £36 and £40, with over 20% of instructors charging more than £40 per hour, nearly three times the rate from mid-2023. 

But this isn’t just a short-term spike, it’s a fundamental market reset caused by persistent scarcity. In many regions, instructors are confidently charging £35 to £45 an hour, driven by rising demand and reduced availability. Following the post-COVID surge, lesson prices rose by 11% in 2023, and now 40% of instructors report earning over £1,000 per week.

Here’s the simple maths:

• £40/hour × 25 hours/week = £1,000 revenue/week
• Over a 46-week working year = £46,000 gross turnover

For many instructors, this marks a significant income boost compared to pre-crisis norms.

More lessons, longer cycles: A hidden revenue stream

The current 20 to 24 week wait times for driving tests are not just a delay; they create new teaching opportunities. Learners often need refresher lessons while they wait, extending the average learning cycle and increasing lifetime value per student.

Many learners are now paying £100+ more than they did in 2020 due to a longer training period. For driving schools, this creates a chance to offer premium packages focused on long-term skill development, rather than a quick pass prep.

High-performing instructors who place emphasis on quality, over quantity, are standing out and attracting repeat bookings and word-of-mouth referrals.

Profitability breakdown: Who’s earning what? 

Driving instruction has never been more financially viable if done right. Here’s a breakdown of typical earnings based on business model:

Key Insight:

Independent instructors with lean expenses (around £13,685/year) and steady hours can earn £45k+ gross, with strong net margins.

What sets high earners apart?

•  Operational efficiency
• Smart pricing strategies
• A premium brand image

Future demand is baked in: Why this isn’t temporary

This isn’t a blip, it’s a market shift. Several factors suggest sustained demand for driving lessons in the UK:

• Demographics: A birth spike in 2003 means nearly 800,000 people will turn 17 by 2025, fuelling ongoing demand for driving lessons.
  
• Post-pandemic behaviours: More learners are opting for personal vehicles over public transport, increasing demand for both driving lessons and used cars.
  
• Market Link: This behavioural shift is boosting the used car market, which is tightly linked to learner driver growth.

For instructors and school owners, this means consistent opportunity, even after DVSA reforms kick in.

The payment revolution: A hidden profit opportunity for driving schools

Most driving schools don’t realise how much payment processing fees are eating into their profits. Traditional card processors charge 1.5% to 3.4% per transaction, plus extras like:

• Authorisation fees (2p/transaction)
• Monthly gateway fees (around £20)
• PCI compliance charges (around £3/month)
• Terminal rental (£15–£35/month = up to £420/year)

 Let’s break that down:

A typical £40 card payment can cost an instructor £1.20 to £1.36 per lesson in fees. That’s £30 to £34 a week or over £1,500 a year for just one instructor doing 25 lessons a week.

For small businesses with tight margins, that’s a major loss.

Open banking: Cut transaction fees by up to 80%

Open banking payments are a game-changer for driving schools. Instead of paying 2% to 5% in card fees, you pay as little as 1p per transaction.

So for a £40 lesson:

• Card fee: £1.20
• Open banking fee: 1p

That’s a £1.19 saving per lesson. Over 1,150 lessons/year = £1,368 saved per instructor annually

Case in Point: Wonderful, a UK-based open banking provider, offers 2,000 transactions/month for £19.99.

 Their platform enables:

• QR codes and payment links
• Instant settlement (no waiting days for funds)
• Seamless mobile bank payments (no card needed)

This is perfect for driving schools that want to reduce admin, speed up cash flow, and offer modern payment options to students.

Why instant payments matter

With open banking, the money is in your account immediately after payment. There is no waiting period of 3 to 5 business days.

This is a huge advantage for instructors managing:

• Fuel costs
•  Vehicle repairs
• Week-to-week cash flow

It also improves your ability to budget and invest back into your business.

Modern payment tools: Going beyond just card machines

Modern UK payment platforms can redefine how driving schools handle transactions across all customer touchpoints. The table below shows how UK operators can use these tools to streamline payments, improve cash flow, and enhance the overall student experience. 

QR codes are especially popular. In 2025, 30% of smartphone users are expected to use them regularly for payments.

Stand out with seamless customer experience 

The younger generation expects fast, digital payment options. Driving schools that embrace this shift gain a competitive edge, appearing more professional, trustworthy, and student-friendly.

This trend is already visible in UK taxi services, where contactless and QR code payments are now the norm.

Platforms like VibePay and Atoa offer modern alternatives that integrate with existing POS systems, letting you upgrade without overhauling everything.

Key benefits of adopting modern payment systems

• Save up to £1,500+ per instructor annually
• Speed up cash flow with instant settlement
• Reduce admin and manual tracking
• Offer payment flexibility to students
• Improve professional image and student satisfaction

Smart strategies for driving schools: Thriving in a tough market

How driving schools can retain top talent in 2025

Transport Secretary Heidi Alexander has urged the DVSA to recruit more examiners, but this could unintentionally drain the driving instructor pool. As Committee Chair Ruth Cadbury points out, many potential examiners are current instructors, who often earn more.

Driving schools must compete to retain talent. While government jobs offer stability, instructors are drawn to schools that offer:

• Competitive pay
•  Flexible hours
•  Clear career progression
• Modern working environments

Smart school owners are using this moment to upgrade their instructor proposition, not just retain staff, but attract the best in the market.

Digital tools to streamline your operations

Tech adoption goes far beyond payments. Leading driving schools are using integrated systems to reduce admin and improve the customer experience.

• Booking platforms like Goldie and BookingTimes automate appointment setting, reminders, and cancellations.
• Student management tools like Varium offer lesson tracking, progress dashboards, and real-time communication.
• Business analytics dashboards help schools track financial performance, instructor efficiency, and booking trends.

This makes operations smoother, reduces human error, and gives owners real-time data to make smarter business decisions.

Premium positioning: Stand out in a supply-limited market

With demand high and competition limited, now is the time to position your school as a premium brand

Strategies that work:

• First-time pass focus: Emphasise results. A higher pass rate reduces student frustration and rebooking cycles.
  
• All-in-one learning packages: Offer bundles that include theory test prep, hazard perception, and advanced post-test skills.
  
•  EV training courses: With 22% of all new cars required to be electric by 2025, schools offering EV-specific instruction can charge more.
  
• Corporate driver training: Serve B2B markets such as HGV, fleet safety, or executive driving programmes.

Smart payment integration: Step-by-step strategy for growth

Don’t just view modern payments as a way to cut costs, treat them as a full business transformation tool.

Four-Phase implementation plan:

Phase 1: Open banking integration
Start with providers like Wonderful or VibePay to lower transaction fees instantly.

Phase 2: Customer experience upgrade
Use QR codes and payment links for fast, frictionless payments. 

Phase 3: Operational automation
Connect business payment services with booking platforms and CRM tools.

 Phase 4: Subscription and instalments
Add tools like GoCardless, Klarna, or Clearpay to handle intensive course payments, direct debits, and corporate invoicing.

ROI example:

A school making £100,000/year could save £2,000 to £3,000 annually by switching from traditional card fees to open banking, enough to fund a CRM system, new vehicle lease, or staff bonuses.

Future-proofing: What's next for the industry?

Government vs. market reality: 2026 and beyond

While the government has set ambitious goals to fix the system by summer 2026, industry insiders remain sceptical. Lynne Barrie, of the ADINJC, warns that root issues like instructor supply are still unresolved.

That means driving schools have 18+ months of high demand and low competition, a rare opportunity to build market share and competitive advantage.

Smart operators are already preparing for the next phase

To future-proof your school:

• Build brand equity now through excellent service, results, and digital maturity
• Streamline operations to lower cost-per-student and free up instructor capacity
• Invest in talent retention to avoid losing staff to DVSA recruitment
• Expand geographically or offer new service tiers (e.g. fleet training or EV certification)

The electric future is inevitable

By 25 December 2025, electric and hydrogen vehicles lose their London Congestion Charge exemption, raising costs but also nudging demand for electric driving instruction.

Meanwhile, the Zero Emission Vehicle (ZEV) Mandate requires 22% of new car sales to be fully electric, making EV training a premium, future-ready offering.

Schools that invest in electric vehicles and get instructors EV-certified will command higher rates and tap into a fast-growing learner segment.

Conclusion: Turning the driving test crisis into a competitive advantage

The UK’s driving school industry is in crisis but also in transition. With 20-week test delays, instructor shortages, and reforms delayed until 2026, schools willing to adapt quickly have a golden opportunity to grow. 

The best driving schools in 2025 will:

• Adopt modern payment systems and save £2,000 to £3,000/year
• Automate and analyse their operations
• Attract and retain top instructors
• Offer EV and corporate training to expand revenues
• Build resilient, data-informed businesses ready for 2026 and beyond

This isn’t just about surviving. It’s about emerging as a category leader.

The storm of 2025 may be messy, but it’s also the biggest opportunity in a generation for driving school owners and instructors ready to think smarter, move faster, and lead.

FAQ

How can driving schools profit from the current test backlog?

Smart operators use premium pricing, extended lesson packages, and modern systems (like open banking) to meet demand during the 24‑week wait and increase revenue per student.

What’s a good hourly rate for driving instructors in 2025?

In 2025, UK instructors typically charge between £35 to £45 per hour, with many earning £40 per hour. This reflects lasting demand during the test backlog, boosting typical weekly income to over £1,000.

Can open banking really save driving schools money on transactions?

Yes. Open banking fees can be as low as 0.5% per payment. At £40 per lesson, schools save around £1 per transaction, about £1,150 per instructor per year vs traditional card fees.

What tech should driving schools adopt first?

Start with online booking platforms (like Goldie), then integrate open banking payments, CRM tools, and automated invoicing to cut admin time and streamline operations.

How do QR code payments benefit driving instructors?

QR code payments offer fast, contactless transactions straight from mobile banking apps, reducing payment delays and enhancing professionalism without expensive terminals.

Is now a good time to invest in EV training vehicles?

Yes. With a 22% EV mandate by 2025 and London Congestion Charge changes, schools offering EV-specific training can charge a premium and attract wider demand.

How can instructors avoid being poached by DVSA examiner roles?

Offer competitive pay, flexible hours, training opportunities, and a professional working environment to retain top talent and build loyalty.

What package options attract more students during long wait times?

Offer bundled courses, combining theory prep, hazard perception, extended refreshers, and post-test skills to increase value and retain learners longer.

How much can a driving school save by switching payment providers?

A typical school earning £100k a year might save £2,000 to £3,000 annually by switching from traditional card systems to open banking, funding upgrades or bonuses.

Will driving test wait times improve before summer 2026?

DVSA aims to reduce waits to seven weeks by summer 2026, backed by examiner recruitment and new tools. However, current projections suggest around 18 more months of delay.

Photo by Iryna Marmeladse on Unsplash