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According to the DVLA website the paper counterparts will no longer be issued from June 8 2015, and existing ones should be destroyed. Also, Paper driving licence holders (those issued before 1998) will remain valid, and should not be destroyed. The next time you need to update your name...

You need to renew your photo every ten years anyway, so evenif you had done it 12 years ago, it would be due again now. As others have said, if your passport is less than 5 years old yo can use that photo if you apply online. Still costs a bit, but not as much.