What Does "Hire or Reward" Mean?
"Hire or reward" is a legal term that means any payment made from or on behalf of passengers in exchange for being transported. It is the key concept that determines whether you need a full D1 licence (or PSV operator licence) to drive a minibus, or whether you can drive on a car licence.
The concept is broader than many people realise. It is not limited to cash payments — it includes any form of payment, whether direct or indirect, that is made in connection with the journey.
What Counts as Hire or Reward?
| Situation | Hire or Reward? |
|---|---|
| Passengers pay a fare for the journey | Yes |
| Passengers pay a contribution to fuel costs | Possibly — depends on amount and regularity |
| An employer pays the driver to transport employees | Yes |
| A school charges parents for transport | Yes |
| A charity charges members to cover running costs | Yes (Section 19 permit may apply) |
| A volunteer drives without any payment | No |
| A volunteer is reimbursed for actual fuel costs only | Generally No |
| A volunteer receives a payment beyond actual costs | Possibly Yes |
The Grey Areas
The most commonly misunderstood situations involve expense reimbursement and employment contracts. The DVLA and courts have considered these questions in various contexts:
- Expense reimbursement: Reimbursing a volunteer for their actual fuel costs is generally not considered hire or reward. However, paying a flat rate per mile (such as the HMRC approved mileage rate) may be considered hire or reward if it exceeds the actual cost of the journey.
- Employment contracts: If driving a minibus is written into a staff member's employment contract, the driving is likely to be considered hire or reward — even if the staff member is not paid specifically for driving. This is a complex area and legal advice should be sought if you are unsure.
- Membership fees: If an organisation charges membership fees and provides transport as part of membership, this may or may not be hire or reward depending on the specific circumstances.
What Licence Do You Need to Drive for Hire or Reward?
If you are driving a minibus for hire or reward, you need:
- A full Category D1 licence (for minibuses with 9–16 passenger seats), AND
- A Public Service Vehicle (PSV) operator licence, unless the driving is covered by a Section 19 permit.
A Section 19 permit allows non-profit organisations to charge passengers to cover running costs without needing a full PSV operator licence. See: Section 19 Minibus Permit Explained.
Driving a Minibus Commercially
If you want to drive a minibus commercially — for example, as a private hire driver, airport transfer driver, or community transport driver — you need a full D1 licence and the operator you work for must hold a PSV operator licence. You will also need Driver CPC to drive commercially.
GS Driver Training provides full D1 licence training for candidates who want to drive commercially. See: D1 Minibus Licence Explained.
What Happens If You Drive for Hire or Reward Without the Right Licence?
Driving a minibus for hire or reward without the correct licence is a criminal offence. Penalties can include:
- A fine of up to £1,000.
- Points on your driving licence.
- In serious cases, disqualification from driving.
- Invalidation of your vehicle insurance — which could leave you personally liable for any claims arising from an accident.
The consequences for an organisation that allows unlicensed drivers to transport passengers can be even more severe, including prosecution and reputational damage.
How GS Driver Training Can Help
If you need a D1 licence to drive for hire or reward, GS Driver Training provides comprehensive training across Surrey and the South East. We can advise on the fastest and most cost-effective route to your licence based on your specific situation. Call us on 01252 447808 or email [email protected].
Frequently Asked Questions
Can I charge passengers for fuel costs without needing a D1 licence?
Reimbursing actual fuel costs is generally not considered hire or reward. However, charging a fixed amount per journey that exceeds actual costs may be. Seek legal advice if you are unsure.
Does a D1(101) licence allow driving for hire or reward?
No. The 101 restriction specifically means "not for hire or reward". To drive commercially, you must remove the 101 restriction by passing the full D1 test. See: D1 101 Restriction Explained.
Can a charity drive for hire or reward?
Yes, if the charity holds a Section 19 permit. This allows non-profit organisations to charge running costs without a PSV operator licence. See: Section 19 Minibus Permit Explained.
