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Recession depresses passport demand

posted : WEDNESDAY, 28TH OCTOBER 2009 11:30:07 GMT comments : 10

filed under : FINANCIAL CRISIS
- Search: Passport demand

Demand for passports has fallen by more than 10% over the past two years
Demand for passports has fallen by more than 10% over the past two years

Demand for passports has fallen by more than 10% over the past two years because of the recession, as Britons holiday at home or put off renewals until the last possible moment, a Parliamentary report reveals.

As a result of the drop-off in demand, the Identity and Passport Service has cut its staffing by 10% by loaning workers to busy JobCentres, said Home Office permanent secretary Sir David Normington.

The details were revealed in a report by the House of Commons Public Accounts Committee on the Home Office's financial management, which hailed "significant improvements" since a critical report by the same committee three years ago.

The spending watchdog said that the Home Office had "come a long way" since 2006, when its basic financial systems were "in disarray". The department was now being held up by the Cabinet Office as "a model of good progress in the civil service".

But the report noted difficulties in accurately forecasting demand for services like passports, and warned the Home Office that where requirements for extra spending arise, Parliament must be informed promptly.

Informing MPs in retrospect of possible new liabilities that have been entered into was "unacceptable and tantamount to flouting parliamentary procedure", warned the report.

Some 6.2 million UK passports were issued in 2006/07, but this figure reduced to 5.9 million in 2007/08 and 5.23 million in 2008/09. The cost of an adult passport has increased over the period from £66 in 2006 to £72 in 2007 and £77.50 now.

Giving evidence to the committee earlier this year before the latest price rise, Sir David said: "What has been happening in the last two years is that demand for passports has been falling and we think that is because as the recession has come on people are delaying renewing their passports.

"It is £72 for a passport. As air travel has got cheaper then £72 is a lot more at a particular point when you may be going on your holidays, it is quite a sizeable sum.

"There are signs that people are either not renewing until the point that they go on their holiday or in the recession leaving it as late as possible and in recent times that has affected our forecasting."

    claire
    Wednesday, 28 October 2009 07:46:46 GMT

    the reason that people are not purchacing passports is because to travel within britain some airlines insist that you have a passport and at £77.50 people can go on the bus in much the same time by the time they have to check in 2 hrs proir to a flight that will probably be delayed anywaybring back the annual passport for trips to europe etcyes i agree that a full passport for outside europe but not for a 10 year term reduce the length of a passport and the cost will come down

    claire
    Wednesday, 28 October 2009 07:45:04 GMT

    the reason that people are not purchacing passports is because to travel within britain some airlines insist that you have a passport and at £77.50 people can go on the bus in much the same time by the time they have to check in 2 hrs proir to a flight that will probably be delayed anywaybring back the annual passport for trips to europe etcyes i agree that a full passport for outside europe but not for a 10 year term reduce the length of a passport and the cost will come down

    larry boy
    Tuesday, 27 October 2009 14:56:50 GMT

    £=euro . who can afford to go abroad when the £ has lost a thrid of its value thank to gordon[ the iron chancellor] dont make me laugh !!

    larry boy
    Tuesday, 27 October 2009 14:51:06 GMT

    £= euro who can afford to go abroad when the £ has lost a thrid of its value thanks to gordon [ the iron chancellor ]. dont make me laugh !!

    Super Sparks
    Tuesday, 27 October 2009 14:19:04 GMT

    I've ditched my British Passport to be honest due to the hassle and cost of getting it re-newed. Luckily I have access to an Irish passport with the added bonus of it being free of charge to re-new once you reach 65 years old......and no chance to date of an identity card from Ireland. Gordon and Company - go swivel!

    john
    Tuesday, 27 October 2009 11:26:53 GMT

    Some of the drop in passport applications will also be from British pensioners living in Spain. The cost of renewing their passports is about £150 and with the struggle they are having due to the collapse of the £ against the Euro they have to decide on either eating or paying this exorbitant fee to renew their passports. I believe I am right in saying the British passport is the most expensive in Spoain of all the E.U. countries to renew

    Mr.Cynical
    Tuesday, 27 October 2009 10:04:49 GMT

    I am sure that the leap in passport price is realy just subsidising the cost of bringing in ID cards, You may have noticed the new passports have more or less taken on the role of ID cards in the UK till ID cards come in for instance in dealing with official government bodies you have to produce your passport as proof of ID or otherwise you need a good 3 other items they speciffy in its place.

    Glen
    Tuesday, 27 October 2009 09:46:58 GMT

    The Passport Service are the worst government department out. Years ago I landed a well paid job in Europe but had to get a passport first. As it was my first passport I had to go through all the new ridiculous procedure producing umpteen documents, testimonies and an interview. The passport Office were a nightmare loosing stuff left right and centre, not replying and getting time estimates massively wrong. Despite their assurances it took months for my passport to arrive so I literally lost thousands, I since found out that of the first 90000 applicants who had to go through this tough procedure all 90000 passed,...pointless or what?

    pete
    Tuesday, 27 October 2009 09:38:57 GMT

    Get real.The main reason for less passpot take up the the outrageous cost of obtaining one. At the outset we were told that there would be free movement across ec countries so we would therefore not need a passport to enter any of OUR EUROPEAN COUNTRIES. That soon went by the board when all the money grabbing parasites we call government realised the shortfall in revenue as a result. I suggest we all become immigrants and fly to Heathrow for our £300 hand outand then go and purchase a new passport. Whats good for them is good enough for us few remaining real british citizens. I EXPECT WHEN TONY MAKES IT TO EUROPEAN PRESIDENT HE WILL SORT IT ALL OUT--BLESS HIM.

    PhilD
    Tuesday, 27 October 2009 07:45:59 GMT

    We should go back to the old system of having a british passport as britain was a lot better off not being part of europe, so why should we have tony blair as president of europe when he was useless as prime minister of the UK.

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