The cost of a passport should rise by £32 if the Government accepts the advice of its spending watchdog
It follows a report by the National Audit Office which says than many fees for government services may be set too low to recover costs, contributing to an average cost recovery rate of just 88% in 2023-24.
The Passport Office had a budget shortfall of £223m last year and a total deficit of £916m over the last five years. The gap is currently covered through taxpayer funds but the NAO said fees should instead be increased to fill the black hole.
As the data used to set fees is often estimated, fees may not reflect the true costs of providing services, causing bodies to over- or under-charge says the watchdog
“Government bodies provide important services for the public and businesses, including issuing passports and driving licences, and filing company information.
“But many are not consistently recovering their costs – posing risks to the financial resilience of these services and fairness between users.
“HM Treasury should strengthen how it oversees cost recovery processes and provide more comprehensive guidance to charging bodies.”
