The agencies, including the Driver and Vehicle Licensing Agency (DVLA), the Driving Standards Agency (DSA) and the Vehicle and Operator Services Agency have been praised in a National Audit Office (NAO) report.
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The NAO says 15 "e-services" are now available to the public, including applying for provisional driving licences, booking driving and driving theory tests, and buying car tax.
During the 2006/07 financial year, around 50 million transactions were handled electronically, providing savings of at least £33m, says the NAO.
The report says 85% of those upgrading their provisional driving licences to full licences have done so online.