Draft Passport (Fees) Regulations 2018

Caroline Nokes Excerpts

Wednesday 28th February 2018 General Committees

[The Minister for Immigration (Caroline Nokes)]

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.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

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!

[Caroline Nokes]

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

[Maria Eagle (Garston and Halewood) (Lab)]

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?

[Caroline Nokes]

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.

[Maria Eagle]

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.

[Caroline Nokes]

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—

[Maria Eagle]

It is not out of date.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

[Caroline Nokes]

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.

[Maria Eagle]

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?

[Caroline Nokes]

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.

[Conor McGinn (St Helens North) (Lab)]

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?

[Caroline Nokes]

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.

[Nic Dakin (Scunthorpe) (Lab)]

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?

[Caroline Nokes]

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.

[Conor McGinn]

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?

[Caroline Nokes]

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.

[Maria Eagle]

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?

[Caroline Nokes]

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.

--- Later in debate ---

[Caroline Nokes]

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.

[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

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?

[Caroline Nokes]

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.

[Alison Thewliss]

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.

[Caroline Nokes]

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—

[Alison Thewliss]

Central.

[Caroline Nokes]

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.

[Luciana Berger]

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?

[Caroline Nokes]

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.

[Alison Thewliss]

Will the Minister give way on that point?

[Caroline Nokes]

For a final time.

[Alison Thewliss]

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

[Caroline Nokes]

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,