The cost of a new passport could rise by a whopping £32 in the latest blow for millions of British holidaymakers.
Ministers have been urged to increase the current £95 renewal fee to address a growing black hole in the Passport Office’s budget.
The department recorded a budget shortfall of £223million last year and a £916million deficit over the past five years.
The National Audit Office, which scrutinises public spending, has recommended that the Passport Office increase the cost of its services to address the issue.
It did not, however, give a figure for how much the passport renewal fees should increase by.
According to The Telegraph, the Passport Office would need to charge each applicant £32 more to overcome last year’s shortfall.
The cost of renewing passports has already risen significantly in recent years.
The department drastically hiked prices for adult passports in February 2023 – from £75.50 to £82.50.
Fees then rose again by 7 per cent last year – before an inflation-busting increase of 6.7 per cent in April.
The Home Office previously said the new fees were necessary to ensure the cost of passport operations is met without relying on taxpayer funding.
It added that fees help cover passport processing, consular services for lost or stolen passports, and border operations.
Adults must currently pay £94.50 for a new passport, while a one-day renewal costs £222.
Nearly seven million new passports were issued last year. Adult passports are valid for ten years, while passports for children are valid for just five.
A Home Office spokesperson said there were no ‘immediate plans’ to increase fees.
Meanwhile, the National Audit Office declined to comment on the estimated price hike.
The call for higher passport renewal fees came in a wider report by the National Audit Office into government services.
A total £340million shortfall was found across all the services looked at – including UK Visas and Immigration, the Court and Tribunals Service and the Driver & Vehicle Licensing Agency.
The National Audit Office’s report concluded: ‘Many government departments rely on charging fees to recover the costs of providing services to people and businesses.
‘But none of the services we looked at recovered costs consistently, and the charges for the services may not accurately reflect the costs.’
‘The government is missing opportunities to deliver efficiencies and share good practice,’ it added.
‘This poses risks to the financial resilience of public services, the costs of which are likely to be borne by future fee payers.’
Gareth Davies, head of the National Audit Office said: ‘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.’
