British holidaymakers could face another blow to their wallets as passport renewal fees may rise by as much as £32, according to new recommendations.
The potential price hike would affect millions of British travellers who renew their passports annually, with nearly seven million new passports issued last year.
The National Audit Office has urged the Passport Office to increase its current £95 renewal fee to address a substantial budget deficit.
The Passport Office had a budget shortfall of £223 million last year and a total deficit of £916 million 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.
This latest increase would follow a series of recent price rises, including a 6.7 per cent hike in April. The NAO has called for the Passport Office to raise its fees within a "reasonable time" to plug the growing financial gap, though it did not specify an exact figure for the increase.
Passport prices could rise AGAIN in major blow to British holidaymakers
PABased on calculations from the £223 million shortfall and the number of passport applications received last year, each applicant would need to pay approximately £32 more to cover the deficit, the Telegraph said.
The recommendation forms part of a wider NAO report examining Government services, which found a total £340 million shortfall across various departments, including UK Visas and Immigration and the Driver & Vehicle Licensing Agency.
The Passport Office has accumulated a deficit of £916 million over the past five years, with the department failing to cover its costs since the 2017/18 financial year.
Currently, adults must pay £94.50 for a new passport, whilst a one-day renewal costs £222. Adult passports remain valid for ten years, while children's passports are valid for five years.
The NAO argued that "persistent deficits lead to large cumulative losses which are difficult to recover and risk creating high fees for service users in later years."
It warned this could "create generational unfairness where services are used only periodically, such as adult passport renewals which happen every 10 years."
A NAO report examining Government services found a total £340 million shortfall across various departments
WIKIMEDIA COMMONSGareth 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."
A Home Office spokesperson said there were no "immediate plans" to increase fees.
Passport fees have risen substantially in recent years
GETTYPassport fees have risen substantially in recent years, with the department implementing a nine per cent increase in February 2023, raising the adult passport fee from £75.50 to £82.50.
This was followed by a seven per cent rise in 2024, before the inflation-busting 6.7 per cent increase in April this year.
The Home Office previously stated that the new fees were necessary to ensure passport operations costs are met without relying on taxpayer funding.
The fees help cover passport processing, consular services for lost or stolen passports, and border operations, according to the department.
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