Free driving licence ?????

smartie1976

That clearly says for a change of name or address.
The OP asked about NEITHER of these things, just about updating his old licence to a new photocard one.

The first link from my post is from the direct.gov.uk, see paragraph:

"Changing a paper driving licence to a photocard driving licence"
If you want to change your paper driving licence for a photocard driving licence you must complete the application form D1 that is available from the DVLA form ordering service and Post Office® branches. You will need to enclose original documentation confirming your identity, a passport style colour photograph and the fee of £19.00. Send your completed application and payment to DVLA, Swansea, SA99 1BU or you may be able to use the premium checking service.

If you send your old one without payment they will return it.