I don't know if it is law but a paper licence will not be replaced. If you reapply for a licence for whatever reason, you will have to provide a photograph and apply for a photo licence. This comes with a paper counterpaer as well
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You can legally keep using the old style paper licence but when you need a new licence for any reason it will be the photo licence - there is no choice
Thanks for your responses. I ask because my son was (pulled over) last night by the police and told to produce his documents within 7 days, he was speeding but the police were in a van, which apparently carry no cameras and so they have no actual evidence of him doing so,(lucky). He has all his docs' but has been told of someone who got a hefty fine for not having a photo license. I'm assuming that it's down to when the license was issued whether a photo is needed or not.
Neither the photocard nor the paper counterpart is a licence in its own right - both items together form the new-style driving licence.
Although it is not law yet, the legislation is in place for photocard licences to be a requirement.
S.39 Road Safety Act 2006 (whenever that section receives a Commencement Order) will allow for the compulsory surrender of old-style paper licences by order of the Secretary of State.