I truly hope that you are correct. However, having examined Section 88 of the Road Traffic Act 1988, I note: Paragraph 1(a)(1) says that the driver must have held a suitable licence; and Paragraph 2(a) says the entitlement does not extend beyond the expiry date or date of revocation of that licence. Paragraph 2(b) provides the 12 month 'grace' and says, "
in a case where a licence is not in fact so granted, beyond the expiration of the period of one year or such shorter period as may be prescribed, beginning on the date of the application or (as the case may be) the revocation or surrender [...]".
The legislation is at
https://www.legislation.gov.uk/ukpga/1988/52/section/88 IANAL, so perhaps others might like to check and comment?
AFAICT, it is Section 88 that provides the continued entitlement to drive while DVLA process your renewal application (at least, that's what their leaflet cites). I understand from an article in the Times that several truck and bus drivers can no longer work because of the DVLA backlog since they still haven't received their renewed licences despite waiting more than a year.