PARLIAMENTARY DEBATE
Draft Passport (Fees) Regulations 2018 - 28 February 2018 (Commons/General Committees)

I beg to move,

That the Committee has considered the draft Passport (Fees) Regulations 2018.

It is a pleasure to serve under your chairmanship in this slightly chilly Committee Room, Ms McDonagh. The regulations would, for the first time, set passport fees under the primary charging powers in the Immigration Act 2016.

In 2017, Her Majesty’s Passport Office issued nearly 7 million passports worldwide. It continues to provide excellent customer service: over the past year, the average turnaround for the vast majority of passport applications was approximately seven days. Its excellent performance has resulted in high levels of customer satisfaction; in a recent customer satisfaction index survey by the Institute of Customer Service, HM Passport Office ranked once again as the best-performing public service organisation. It has improved its customer satisfaction index scores over each of the past five years and has now appeared for the first time among the top 50 high-scoring organisations in the survey.

By way of evidence, I renewed my passport very recently indeed and it came back in five days. Under the new system, in which applicants can upload their photograph from an iPhone, the application took 10 minutes. What a fantastic service!

I am delighted to hear that feedback from my hon. Friend, the former Immigration Minister.

As a counterpoint to that excellent experience, I know of a case in which a passport that had been correctly applied for was delivered by courier to the wrong house. How often does that happen?

There are two points that I would like to address. My hon. Friend the Member for Scarborough and Whitby makes the valid point that the proportion of passports issued within seven days has surpassed 95%; the vast majority are issued very quickly and with huge customer satisfaction. However, I am always concerned to hear about instances of the process going wrong. If the hon. Member for Garston and Halewood raises the case with me outside the Committee, I will raise it personally with the head of the Passport Office.

I raised it at the time with the then Home Secretary, who is now our Prime Minister. The situation has been ameliorated, but the problem has not been solved. A new, full and correct British passport was delivered to what was obviously the wrong address and never, to my knowledge, has it been recovered.

By her own admission, the hon. Lady refers to a case that must now be several years out of date. [Interruption.] Well, at least 18 months. I reassure the hon. Lady—

It is not out of date. It has not been resolved.

As I have said, the customer satisfaction with Her Majesty’s Passport Office has increased significantly. We have made excellent improvements with the digitisation of the service, which my hon. Friend the Member for Scarborough and Whitby referred to, but I am absolutely prepared to take up the issue of the missing passport, find out where it has got to and, of course, ensure that it is cancelled, so that no one can use it fraudulently.

We now score alongside organisations such as Amazon and John Lewis on customer satisfaction. We are the only public sector body on the list, and we scored higher than Prudential, Debenhams and Hilton. I welcome those accolades as testament to our hard-working officials across the UK.

The 2016 Act includes powers that allow Home Office fees to reflect the costs not only of considering an application and issuing a passport, but of any other function of the Secretary of State in connection with UK passports, including costs associated with British citizens leaving and entering the UK. The full costs associated with processing applications and issuing passports are funded by income from fees charged for passport services, but the number of passengers arriving at the UK border continues to rise: approximately 130 million passengers arrive each year, of whom approximately 70 million are UK passport holders. This leads to a significant cost for the Home Office that is largely funded by the Exchequer. Allowing passport fees to reflect the costs to the Home Office associated with UK passengers leaving and entering the UK means that we can reduce the burden on the Exchequer and move towards a “user pays” basis for our overall service to UK passport holders.

The impact assessment suggests that if the draft regulations are implemented, £50 million of additional income in the next financial year from these increases will come into the Exchequer. If that happens, will the Minister tell us what percentage of the costs that she describes will be met by income from passports?

I will move on to explain how the income received is only part of the £100 million investment that the Home Office will make in our borders in the coming 12 months. It is important that we recover any additional costs in a balanced way that incentivises the use of the more efficient online application process, which we intend to become the standard passport application channel. Although we are proposing to increase most fees, people who submit their application online will be charged a lower fee than if they submit their application by post.

Does the Minister accept that constituencies such as mine, which have an older population who have limited access to the internet, will be discriminated against by that? Has she done any equality impact assessment on constituencies such as mine?

We have looked very carefully at this issue, and I can reassure the hon. Gentleman that 90% of the UK population have access to the internet. I recently made the point in a different Committee Room that many older people use the internet very successfully and with great efficiency. It is important that we reflect the difference in cost to HM Passport Office between a postal application and the online application, which obviously is much more simple and more straightforward. We also provide an assisted digital service for those who might have difficulty submitting their application online.

Could the Minister give a bit more information about how the assisted service works for people with disabilities or the elderly in remote or rural areas, such as parts of my constituency?

We are enabling people to submit their application via a third party, so they can ask people to assist them if they have particular disabilities or challenges; that applies particularly to those who have a visual impairment. The hon. Gentleman makes a very important point about areas that might have lower broadband speeds. In my constituency in the south-east, I have some of the lowest performing wards for broadband in the country, although I am very conscious that my excellent colleague, the Secretary of State for Digital, Culture, Media and Sport, has made huge strides and has hit our targets for increasing high-speed broadband across the country. I accept that there is still work to be done on that.

We intend to increase the online adult fee by only £3, which is broadly in line with inflation. That will mean that the adult fee will increase to £75.50, which is still below what was charged between 2009 and 2012, when an adult passport cost £77.50. The child passport fee will increase by the same amount, and will be set at £49. Fees for adult and child passports applied for via post will each increase by £12.50, to £85 and £58.50 respectively, to reflect the additional cost of processing postal applications. HM Passport Office provides excellent priority services for applicants who wish their applications to be processed faster, or who prefer to apply in person. It is right that applicants pay more for these priority services. We intend to move the fees for these services towards full cost recovery sooner than online or postal services, given their optional nature and the additional benefits that the customer receives by using them.

Finally, we are introducing a new and specific power in the regulations that allows the Home Office to consider waiving fees for replacement passports where they have been lost or destroyed during an incident considered a national emergency or crisis, where the UK Government have activated exceptional assistance measures overseas. This will allow the Government to ensure that we can provide the appropriate support to vulnerable individuals in emergency situations and crises.

We are committed to ensuring that the Government continue to move towards a position where the border, immigration and citizenship system is funded by those who directly use it, and where, as a key part of that, passport application fees include the cost of UK passengers leaving and entering the UK. The additional income from the proposed fee increases will help to protect vital frontline services, and ensure that we continue to operate a world-class border system.

Could the Minister confirm that the additional revenue raised will be used to re-employ some of the 1,000 border control staff whom this Government have got rid of in the last seven years?

I would like to reassure the hon. Gentleman that, as part of our plans for Border Force, we have already recruited 300 additional staff, and we are launching a recruitment campaign for a further 1,000 staff. Of course, he will be as conscious as I am that as we move towards Brexit, it is imperative that our Border Force has the necessary number of staff.

I am grateful to the Minister for giving way again. I wonder whether she has had time to gather her thoughts about my earlier question, which was: if these regulations are implemented, what percentage of the full costs will be recovered by the fees for issuing passports?

As I have said repeatedly to the hon. Lady, we acknowledge that this change will increase the amount of revenue by about £50 million, but we are investing £100 million in our borders and our passport control system over the coming year. I think that is a very straightforward answer: 100% of the fees recovered will be reinvested in our borders, immigration and citizenship service, as I very clearly stated.

I have nothing more to say, other than that I commend these fee regulations to the Committee.

First of all, Labour supports the proposal to waive passport application fees for members of the armed forces, members of the diplomatic service and individuals who have been affected by a crisis. It seems an oversight that these people have had to pay fees until now, and it is right that that situation is being corrected.

Labour is opposed to the 27% increase in the cost of children’s passports and the 17% increase in the cost for adults. A family of four applying by post would pay £287 for all their passports. We consider that an extortionate fee. Penalising people who apply for their passports offline hits families with children and everyone who does not feel comfortable applying for a passport online. In response to one of my written questions, the Immigration Minister said that

“Her Majesty’s Passport Office is developing further help for those who wish to apply online, which includes exploring options for making services available from the High Street and by working in conjunction with community support groups.”

Exactly what progress has there been on that? How many high street services have been made available? How many community support groups have been contacted, and in what ways are the Government working with them? It is vital that such support is rolled out ahead of the fees increase at the end of March.

The Home Office and Ministers have repeatedly made the commitment that post-Brexit registration of EU nationals will cost no more than the cost for UK nationals of applying for a passport. Does that apply to the price of a UK passport before or after this increase comes into force? It would seem underhanded for the Government to fix the cost of settled status applications at the cost of a British passport, and then increase the cost of applying for a passport.

Finally, research by the Joint Council for the Welfare of Immigrants found that the hostile environment and right-to-rent policies are causing discrimination against British citizens who do not have passports, particularly those from ethnic minorities. When asked, 42% of landlords stated that as a result of the scheme, they were less likely to rent to someone without a British passport. The black and minority ethnic tenant without a passport was 25% less likely to be offered a viewing of a property and 20% less likely to be told that the property was available.

What are this Government doing to monitor the right- to-rent scheme, and to make sure that it does not engender discrimination? What are they doing to ensure that those with the right to rent have easy access to documents that prove that, and do not have to pay £85 for a passport unnecessarily?

I personally do not consider the cost of a passport to be exorbitant. It is a 10-year passport, so for less than £8 per year a person can have a red passport—in future, I hope they will have a blue passport with gold lettering.

I have used the online process, and it is very good, but it is not all online: people have to return their old passport in the post. Indeed, many people consider a passport so valuable a commodity that they return it by recorded delivery, with all the costs involved in that. The Passport Office will then clip off the corner and send it back. When I was in the Home Office, we looked at whether it was necessary for the person to send the passport back, only to have it sent back to them. I wonder if the Minister will consider whether it would be cheaper for the Passport Office, and for us applicants, if it was no longer necessary for the old passport to be sent in merely to have its corner cut off, given that all the information the Passport Office needs is now held electronically on its system.

I am absolutely appalled by comments that have been made about the cost of the passport not being excessive. The cost may be all right for the hon. Member for Scarborough and Whitby, but it is not all right for a good number of my constituents in Scotland, who not only struggle to pay for the school trips that their children might want to go on, but will very much struggle to pay these exorbitant passport fees.

I am deeply concerned that, for many people in poorer communities in Glasgow, there is also a digital divide. That has been a well-documented phenomenon. Carnegie UK Trust’s recent report, “Across the Divide”, says that around 40% of the poorest communities in Glasgow are not online. They are being asked by the Government to pay a premium for the online service, despite the fact that they are not able to get online and access it.

Will the hon. Lady give way?

I will let the hon. Gentleman intervene in a second. In some of these communities, 46% of single parents do not have internet access. If the hon. Gentleman would like to explain how this is a good deal for single parents, I am happy to let him intervene.

I simply point out to the hon. Lady that I represent a constituency that has very poor broadband coverage and comprises some of the most deprived postcodes in the country. However, if people go to a local library or even some schools, they will be able to access the service and can often receive support. There is a lot of support for people to get online and access the digital world. It is not impossible to access the passport service online through a facility in their area.

It may be possible for random constituents in his constituency to stroll into schools and go on to the computers, but that is not the case in Glasgow. There are many computers in Glasgow’s libraries, and they are very much used by the population, including those who are trying to apply for universal credit online. There are lots of pressures on library services, precisely because the Government are moving things online, while many people do not have the facilities to access them: they cannot afford broadband, if it is even available, or a computer, and unfortunately still do not have the digital skills to access them. It is unacceptable that the Government are making people in poorer communities pay a premium for something to which we should all have a right.

Will the hon. Lady give way?

I want to move on, if the hon. Gentleman does not mind. I am concerned: the Government talk about more modern processes and things becoming cheaper and more efficient, but that is not reflected in the fees, which are going up. If the service is becoming more efficient and cheaper to run, because things are going online, members of the public should see a decrease in their passport fees. It is ridiculous that they are actually seeing an increase; whether for an online application or not, the price continues to go up.

I asked the Library to prepare figures on this for me. It had some difficulty in finding the range of figures over time, but I have the passport application fees for 32-page passports for adults and children. In 2001, the fee was £30 for an adult and £16 for a child. That will go up to £75.50 for an adult and £49 for a child if the application is made online, or £85 for an adult and £58.50 per child by post.

The online change since 2001 is a 151.7% increase for an adult and a 206.3% increase for a child. That is absolutely unacceptable, particularly when we consider that child passports last for only five years. By the time a child reaches the age of 16, they could have had three different passports. That is an unacceptable burden on families, particularly at a time when all other prices are also going up and household incomes are being squeezed by Tory austerity every single day.

Could the Minister tell us about her full cost recovery plan for paper applications? That indicates to me that there will be a further increase next year. It is a significant cost for people, particularly if they do not drive and so do not have a driving licence, because the passport will be the only way of having validated and accessible identification. The hon. Member for Manchester, Gorton, mentioned that that is becoming a requirement for many more people, to get a rental agreement or financial agreement, and in life. It will also be a requirement should Tory plans to ask for ID at voting stations go ahead. People will find themselves disenfranchised if they do not have the £85, £75.5 and £49.50 to pay those exorbitant fees. If the Government want to propose ID cards, they can do so, but doing this by the back door and charging people an absolute fortune for it is utterly unacceptable.

The Minister mentioned that, to deal with vulnerable groups who cannot use online resources, the Government will work to improve the accessibility of systems and support arrangements to help people to access services online and minimise the impact on protected groups. I would be very interested to know what consultation they have done with groups that are considered vulnerable. What have they done to engage with all those groups? Will they publish any of that consultation process? I have not seen any of that information out there. The draft regulations are coming through a Delegated Legislation Committee and will come into force at the end of March, and there is very little time for people to have any kind of say on this matter before then. I would be very concerned if vulnerable groups had not been consulted formally.

Paragraph 8 of the explanatory memorandum states that there has been

“no public consultation on the fees set out in this instrument.”

It is therefore very likely that there has been no consultation with the groups that the hon. Lady mentions.

Clearly, there has been no public consultation, as this instrument has come through in the way that it has, but I was curious about whether the Government could tell us anything about private consultations that they may have had with these groups, and about exactly what improving the accessibility of our systems would mean in practice. For many people, the systems are not easily accessible, which is why people like to do the application on paper—to take their time, to go through things properly and to ask for help and support in a way that is appropriate to them. We need to do an awful lot more to ensure that these services are accessible. I ask for a good deal more clarity.

The impact assessment says that there is no impact on businesses, charities or voluntary bodies, but I dispute that to some degree. Some charities require their staff to travel or to have a second passport for various purposes. It would be useful to know what consultation there has been with charity groups and those types of organisations that may require their staff to travel and be passport holders. Organisations may have an interest in absorbing those costs in their business, or they may ask their employees to take up that extra cost in particular sectors and industries.

Finally, we are being asked to pay more for passports, but we do not know yet what will happen with Brexit, and what the value of this new passport will be, because we will be able to do less with it than we can with our passports at present. [Interruption.]

Thank you, Ms McDonagh.

The impact assessment and accompanying notes state on page 3, under the paragraph on “Problem under consideration”, that in the Immigration Act 2016,

“provision was made for the passport fee to cover the cost of British citizens crossing the UK border”.

From the papers we have received we know that if implemented, these provisions are expected to raise an additional £50 million for the Home Office in the first year. If the proposals are implemented and there is that additional £50 million, what percentage of the cost of British citizens crossing the UK border will be covered by passport fees? It is a simple question. The provision in primary legislation under which the regulations are being made was intended to lead to full cost recovery. If these provisions are implemented, will full cost recovery be achieved? A Minister implementing proposals under legislation that has the express intention of meeting that goal should be able to answer that. Perhaps she will try again and come back with an answer in her response.

I wish to make a few other minor points arising from casework experience. I am sure we all get cases where things go wrong with passports at the last minute. I do not have the figures, but with newer passports there seems to have been an increase in the number of chips that stop working. I do not know whether they are in a more vulnerable place, but they seem to stop working more regularly than those in the previous design of passport. When a passport’s chip stops working, it effectively invalidates the passport, because although technically it can still be used, people get stopped at borders because the passport shows up as not having the biometric information that the chip imports to the document.

People who have a dud passport—even if it is only six weeks old, never mind 10 years old—have to buy another, because it is not replaced if the chip stops working. Does the Minister think it is right to propose that, in circumstances where a chip stops working through no fault of the passport holder—the passport has not been put in a washing machine or anything like that—the higher fees ought to be waived? Why should that person have to pay again? I know of instances of that happening, and with the higher fees there will be an additional problem for people.

People also lose passports suddenly, sometimes—unfortunately for them—just before they are due to go on holiday, or use the passport in another way. For example, there was an enormous fire in a Liverpool car park at Christmas that destroyed every car in the car park. Some people will have had their passports in their cars, and nobody has been able to return to their vehicles, most of which are mere cinders. Many people might therefore have had to apply for another passport. Will there be any ways in which people who lose their passport through no fault of their own—an act of God like that—can get a discount, given how passport fees are going up?

A sudden loss of a passport just ahead of a planned trip can necessitate using the premium collect service, and there are circumstances—I know they are rare—in which entire families could lose their passports just before they are due to go on holidays. For premium collect, even an online application for a family of four—two children under 16 and two adults—would cost £656. That is an enormous sum of money; sometimes more than the cost of the holiday a family expects to go on. We have all come across extremely unfortunate circumstances when families have suddenly needed to acquire passports swiftly. While it is welcome that there is such a service, can the Minister tell us whether in any circumstances those very high fees might be lowered?

The regulations have provision for waivers, where there is a reference to crises abroad. The regulations define a crisis as

“an incident in which at least five British citizens have been killed or injured, or are in danger of being killed.”

During my time in the House, I have dealt with casework where there has been a crisis abroad but not as many as five people have been killed. I am sure many colleagues have, too. Can the Minister explain why at least five UK citizens have to be killed, injured or in danger of being killed or injured for something to count as a crisis and for the waiver in the draft regulations to be implemented? Members often go to the Home Office and say, “I’ve got this crisis with a family of constituents.” Will the Minister have any discretion over that definition? It does not seem to me that she will. Why has five been identified as the appropriate number? I could bring up other cases—as I say, we have all had them—but the ones I have mentioned illustrate some of my concerns about the draft regulations.

I certainly thank hon. Members for the consideration they have given the draft regulations. I want to pick up some of the issues that have been raised, particularly about assistance for people who need it when applying for their passport online. In addition to providing phone support and suggesting help from friends and family—assistance from a third party—we have designed the online application to comply with screen readers for those with sight impairment, but we will come forward with a full range of proposals. We have worked with organisations such as Age UK to ensure that they are sighted on this and understand the assistance that can be given. We are finalising the guidance that we will bring forward.

On high street assistance, which a number of Members raised, we have worked with the Association of British Travel Agents to see what support travel agents up and down our high streets might be able to give their customers who are not able to get online.

Only a handful of travel agents in my constituency come to mind, and I cannot think where in their small spaces they would be able to put computers for my constituents to apply for passports.

May I press the Minister on the digital divide? Everyone in this room can afford a mobile phone, owns one and knows how to use it, but thousands, if not millions, of people across our country do not have those skills or access to those resources. Particularly in the wake of the most recent plans by the Department for Work and Pensions to close jobcentres, including two in my constituency, my constituents have fewer opportunities to access computers. What will she do to ensure that people really can access provision and apply online?

As I have indicated, there are other facilities that people can use. We have heard that it is perfectly possible to apply on a smartphone, but Age UK is there to support people who want to avail themselves of its services. I noticed that there was some scoffing at the suggestion that people could use computers in schools. The Romsey School and the Mountbatten School, which are community schools in my constituency, welcome in members of the wider community and like to regard themselves as hubs that encourage access. Further education colleges across Hampshire are able to bring their communities in, too, so I dismiss the idea that there is a barrier to communities. Actually, those institutions have discovered that it is a way to have a much more rounded community.

A comment was made about broadband speeds, particularly in Scotland. I note that Ofcom commented in a 2016 report that there was a 79% satisfaction rate, and that broadband take-up in Glasgow in particular has gone up significantly.

The Minister seems to have misunderstood my point. I was not talking about broadband speeds in Scotland; I was talking about broadband access—people being able to use a computer and access digital services. That is the issue I was trying to point out. There is a digital divide in cities: many people and communities just do not have access to the internet at all.

I regret that I do not have the figures to hand, but I would be interested in the number of smartphones that are used across Glasgow and in the hon. Lady’s constituency. A number of Members mentioned universal credit, which many users of DWP services access via their smartphone or tablet.

The hon. Member for Garston and Halewood asked what percentage of the cost of primary control points would be associated with UK passengers. This increase will enable that to be a 40% contribution, which is still some considerable way from covering the entire cost. However, as the powers in the 2016 Act set out, we will be able to review those costs going forward. Hon. Members will note that, when it comes to priority services, which are, by and large, optional, we have sought to move to quicker full cost recovery.

In certain circumstances, Her Majesty’s Passport Office has the ability to exercise compassion and discretion. I have to say that my experience, even before coming into this role, was that it was always keen to make sure that the best service was delivered to constituents who found themselves in difficult situations in which, at the last minute, an emergency passport is needed, whether for compassionate travel or when somebody had not anticipated that their passport would expire.

Passports are only one way to prove identity, and across Government we certainly seek to encourage people to look at all sorts of different ways to prove their identities, including ambitious plans for digital identity. However, we will continue to make sure that those who need a passport as a form of ID will be able to use it. I point out to the hon. Member for Glasgow East—

Central.

Central; I apologise. I point out to her that passport fees went down in 2012. She provided us with a comprehensive list of the increases since 2001, but I make no apology for the action of the last Labour Government.

I had a moment to check the statistics on smartphone use in the UK. This year, it is 73.12%. Does the Minister therefore accept that we cannot expect the just under 27% of the population who do not have a smartphone to be able to access the service in the way she set out just a moment ago?

I respectfully point out to the hon. Lady that, just because somebody does not have a smartphone, it does not mean that they do not have access to a computer via a library or a desktop computer either at home or at work. As we have heard, a range of steps have been taken, including the work we are doing with ABTA to make the service available in high street travel agencies.

The hon. Member for Garston and Halewood makes an important point on chip failure, although those are rare events. I have to say that I suffer myself from a nine-year-old passport whose chip no longer works. I have never found that to be an impediment to travel, but I cannot use e-passport gates, which makes me very cross. However, I will be renewing the passport shortly. In the event of chip failure, customers can send their passport to us, and if it is confirmed that the chip has failed, we will replace it for free.

An important question was raised about fee waivers. That is a very specific power that we chose to introduce after the recent horrendous tragedy at Grenfell Tower. There was no specific power for Her Majesty’s Passport Office to automatically reissue passports lost in that dreadful tragedy. We have introduced the waiver power, I have to say, sincerely hoping that we are never in a situation in in which we will have to use it. However, as I said, the Passport Office acts with compassion. Certainly when British travellers are overseas and need passport documents restored very quickly, it has a very strong track record in meeting its customer service objectives—I will not say duties. It is absolutely committed to that, and I think it has done well in proving its compassion when those circumstances arise.

As I sought to explain, the planned fee increases are a vital step towards meeting the Government’s ambition for a border, immigration and citizenship system that is increasingly funded by those who use it. They will ensure that we can continue to fund the world-class passport service that British passport holders already receive. There were 46 million passenger crossings through e-passport gates using UK passports in 2017. The UK passport remains excellent value for money. As I have pointed out, fees were reduced in 2012, and there has not been a fee increase since 2009. We currently process 99.9% of straightforward applications within three weeks, and on average, customers making a non-priority application can expect their passport to be issued seven working days after the application is made.

We are committed to meeting the needs and expectations of those who increasingly wish to use digital channels to access Government services, and I am conscious that 33% of applications are already made online. The new fee structure reflects the fact that it costs more to process postal applications than those submitted online, and is in line with key Treasury charging principles.

Operationally, Her Majesty’s Passport Service often works with speed and flexibility to respond to particular customer needs where there is a compassionate case for it. Only recently, the public counter in Glasgow remained open for business despite severe adverse weather conditions, working beyond normal opening times to honour a priority appointment that an applicant had missed due to the bad weather.

With more than 90% of adults in the UK having access to the internet, and third parties being permitted to apply on a person’s behalf, the vast majority of people should face no obstacle to applying online. However, as I have said, we are developing further help for those who wish to apply online but need additional advice or support. We are working to deliver an assisted digital leaflet for relevant support groups to enable them to help their clientele apply online. They will also ensure that their online application route is built in such a way as to be extremely simple to use and compatible with various aids, such as screen readers.

Will the Minister give way on that point?

For a final time.

When does the Minister expect the service to come into force, and will it be before the passport fee increase?

As the hon. Lady will know, the passport fee increase is scheduled for March of this year. It is certainly our ambition to make sure that all the assistance is available as soon as is practically possible.

We will continue to provide an excellent service to millions of passport holders and applicants. As such, I commend the draft regulations to the Committee.

Question put,