Government costs for the theory exams in driving tests have been slashed by almost £10 million per year, ministers have announced.

New contracts in place from September will save £100 million over nine years after the Department for Transport and the Government Procurement Service ran a competition for computer-based testing contracts.

In October last year, learndirect was awarded an overall Government framework deal for computer testing.

And the Driving Standards Agency has now agreed learndirect will provide the driving theory test from September 2016. The current, firm Pearson Driving Assessments, will continue until that date.

In a written statement to MPs, Transport Minister Stephen Hammond said: "The result of these contract arrangements has been to secure a very good, value for money deal.

"The reduction in net cost per test, allied to the Driver and Vehicle Standards Agency's forecast of increased test volumes as a result of the economic recovery, means that more than £100m will be saved over the next nine years.

"In addition, national coverage will be improved with tests becoming available at more locations."