It's not clear, NG, whether your post refers to passport rules or to driving abroad.
UK driving licences (whether of the old paper type or of the new photo type) can't be used, in place of a passport, for travel to any other EU country. Nearly all EU countries (and a few non-EU countries) are full signatories to the Schengen agreement, which has abolished routine passport controls between those countries. However the UK has refused to sign the agreement (and Ireland is thus prevented from signing, even though they want to, because of the open border between the two countries). That means that UK citizens have to present a passport (or, in future, a national identity card) to enter any other country (except Ireland).
Any full UK driving licence (of either type) is valid for
driving anywhere within the EU. If you plan to drive abroad, you should acquaint yourself with the general rules, and also country-specific rules, by consulting this web site:
http://www.theaa.com/motoring_advice/overseas/ index.html
The only situation where a photo-style driving licence is valid for travel, when a 'paper' one is not, is when travelling by air within the UK (or between the UK and Ireland). All airlines currently accept a photo-style driving licence (but not a 'paper' licence) as proof of ID for security purposes.
Chris