The paper driving licence which was introduced in UK in 1903, is going to be changed from the beginning of 2015. The changes were announced back in 2011, by the transport secretary (at that time) Justine Greening.
UPDATE: The new date for replacing the photo-card licence counterpart is 8 June 2015. So, starting from then, DVLA stops issuing the counterpart but you still need to keep your current photocard driving licence.
The paper element of the driving licence also called the paper counterpart, will be phased out.
All the information held on the paper counterpart will be held online by the DVLA (Driver and Vehicle Licensing Agency). A new electronic system was put in place of the paper tax disc.
All the changes to the driving licence, will save UK about £8m.
When the new system will be put in place, the DVLA will develop a new app which will allow organizations like transportation companies, car hire companies, …etc to see the info that is now on the paper counterpart.