Passport (Fees) Regulations 2022

Lord Paddick Excerpts

Monday 23rd May 2022 Grand Committee

[Baroness Foster of Oxton (Con)]

My Lords, I echo some of those points. I used the blue passport through an e-gate in Brussels, and it was fine. It depends on the type of technology and the gates they are using at individual places. This is just to clarify that point.

My second point is also for clarification. We were told that a lot of the backlog was due to people who could have applied online but did not—they applied physically and there was an overload—but I am not sure about that and would like some clarification. There clearly has to be a presence. While a certain amount of work can be done online, such as processing, security is a huge element of sending out a passport to somebody, whether a new applicant or somebody who has changed their name, as they will need hard-copy documents. Is my noble friend satisfied that there are enough people working in the Passport Office, not from home, who are present to facilitate all this?

The backlog is now becoming quite appalling. People are missing business trips, losing money on holidays and various other things. Often, that will not be covered by insurance whereas Covid may have been. Something may have been put in the insurance for that, but you will not get travel insurance to cover your passport not being returned to you, particularly when you have put it in for replacement in advance.

[Lord Paddick (LD)]

My Lords, I thank the Minister for introducing these regulations, and I note that the fee amounts are the same as those prescribed by the 2018 regulations. Overall, we welcome these regulations. I start by declaring an interest in so far as my husband lives in Norway, which involves me in frequent foreign travel to the extent that I will—if I can get an appointment—have to use the Passport Office premium service when my passport comes up for renewal next year.

Secondly, in case anyone uses the Official Report as a reliable source of information, in answers on an Urgent Question from the other place on 12 May, a number of noble Lords, including the Minister, stated that EU/Schengen area countries required there to be six months unexpired on a UK passport for entry. This is not the case. There must be three months left on a UK passport from the anticipated date of exit from the EU/Schengen area, in addition to the UK passport being no more than 10 years old. I am very grateful to the BBC’s “Morning Live” for confirming this. I looked online as well, and the passport must be valid for three months from when you intend to leave the EU/Schengen area, rather than three months from when you enter. So, you should be questioned at the border about how long you are going to stay, and they will then check that you still have three months left from when you intend to leave.

[Baroness McIntosh of Pickering (Con)]

If the noble Lord will permit, is he also aware that in any Schengen area country, for example in Denmark, if a British passport is not stamped at the point of entry, you are deemed potentially to have overstayed your welcome and gone above the 90 days that were permitted, purely by the fact that you have not had your passport stamped? This is clearly stated on the Foreign Office website—I commend the Government for that—but I think that many British people are potentially falling foul of this.

[Lord Paddick (LD)]

I have the converse problem, in that I am running out of pages in my passport, because every time I go to Oslo, I get a stamp when I arrive and a stamp when I leave, even though, because I have applied for a residence permit—which I have yet to receive—I am not bound by the 90 days. However, we digress slightly.

Can the Minister explain what the cost of the Passport Office is overall compared with the amount of money that it generates? How much profit does the Passport Office generate, and how does the last financial year compare with previous years?

Following up on the questions raised by the noble Baronesses, Lady McIntosh of Pickering and Lady Foster of Oxton, again in answers on an Urgent Question from the other place, the Minister was asked whether the 1,200 extra staff at the Passport Office employed to deal with the unprecedented surge in demand for passports following the end of Covid restrictions on travel were agency or permanent staff. Does the Minister have an answer to that question now? Conversely, how many permanent staff were furloughed in 2020 and 2021, when there were 3 million and 2 million fewer applications respectively than predicted?

We need to know whether the Passport Office is providing value for money for both applicants and the taxpayer. What staff cost savings were made in 2020 and 2021 when demand was low? How flexible is the Passport Office workforce in the face of fluctuating demand? Presumably, demand is higher in spring and summer and lower in autumn and winter. Are additional temporary staff employed at peak times or are permanent staff sitting around for six months of the year not doing very much?

How much more than the cost of producing a passport are applicants charged? If applicants pay for a premium service that the Passport Office cannot deliver within the advertised timeframe, is the premium fee refunded?

I very much welcome the introduction of a booking fee for a priority service that is not refundable if the scheduled appointment is not cancelled by the applicant 48 hours or more in advance. Slots are limited—or, at the moment, non-existent—and applicants need to be incentivised to keep their appointments. However, I question whether the whole fee should be forfeited if a prospective passport holder fails to attend an appointment for their application to be administered under the priority services without giving prior notice. I understand that the Passport Office could have made a considerable profit were the applicant to have attended the appointment but surely the cost of producing the passport should be refunded to the applicant—that is, the profit element should be retained but the cost element that is no longer incurred by the Passport Office should not. In other words, if the person does not turn up, they will not be issued with a passport, therefore the cost of producing that passport is not incurred by the Passport Office. The additional fee for a premium service should therefore be forfeited but surely the cost of producing the passport should be returned to the applicant. Can the Minister say what the fixed and marginal costs are in the case of a missed appointment for a priority service?

We acknowledge the various fee waiver and fee reduction aspects of these regulations for specified groups, as well as the discretion to retain deposits and fees dependent on individual circumstances, but, as with all Home Office services in relation to the UK border, the question remains as to why the Home Office uniquely must be self-funding. With so many more people who require a passport other than our Armed Forces, diplomats and government Ministers having to travel abroad, whether on business or to support vulnerable relatives, for example, why is almost everyone charged a much higher price for a passport than it costs to produce it? I look forward to the Minister’s response, either now or subsequently in writing.

[Lord Coaker (Lab)]

My Lords, I thank the Minister for introducing the regulations. We look forward to her response to the various questions and comments.

I very much agree with the remarks from the noble Baronesses, Lady McIntosh and Lady Foster, and, frankly, all the remarks that the noble Lord, Lord Paddick, made. Before I start my remarks in support of them, the regulations raise a number of questions and comments for us all, not least that we are debating passport fees as set out in the schedule while, as we have heard, people are waiting months for their applications to be handled. They are often unable to access help and many are missing holidays, weddings and job opportunities because the passport system simply is not working, as the noble Baroness, Lady Foster, pointed out. Slowing down the fast track, as these regulations do, is almost an admission of failure. Why do Ministers not believe that the system can get back on track and meet existing targets in the longer term?

We have no concerns over the purely technical changes that set out passport fees more simply. We agree that, as the noble Lord, Lord Paddick, pointed out, it is fair to look at keeping the booking fee where a person books a priority appointment but fails to turn up. However, we have a few questions to raise on this and other aspects of the regulations. Can the Minister update us on the current backlog? The latest reported figure was half a million but the Home Office has not provided updated figures when asked.

Over the weekend, the Times reported that staff have warned that the systems they are being asked to use are not fit for purpose. How will the existing regulations be made fit for purpose when the existing system is said by staff not to be fit for purpose? The article reported that the existing pressures are only going to get “heavier” and that people are being given “poor, misleading advice” by the advice line provider. As I said, this SI will slow down the fast-track process by one day. Is that a proportionate response to all the problems being faced?

--- Later in debate ---

[Baroness Williams of Trafford (Con)]

My Lords, I thank all noble Lords for their contributions. There were quite a few questions, so I may not be able to cover absolutely every single detail, but I will start with the points made by my noble friend Lady McIntosh of Pickering. She and my noble friend Lady Foster spoke about people delaying—for obvious reasons due to Covid—their applications throughout 2020 and 2021. We did prepare extensively for elevated demand with no restrictions upon international travel, and those preparations have ensured that passport applications can be processed in higher numbers than ever before. In preparation for the demand for international travel returning, we have been advising customers since April 2021 to allow up to 10 weeks when applying for their passport, and this remains the case.

The noble Lords, Lord Coaker and Lord Paddick, asked about our anticipated forecast. It is 9.5 million applications in 2022, and we are on target to deliver those. We have employed 500 staff since last April, and there will be a further 700 this summer. They will be a mixture of agency and permanent staff, because we clearly do not need 1,200 permanent staff for ever to deal with quite a short-term issue. Moreover, 90% of passports in the 10-week timeframe are being processed within six weeks.

Turning to the blue passports, I also have a blue passport and I have not had a problem with it. I have not heard of the glossy-photo issue, but I will certainly take that away and inquire about it. It is possible, as my noble friend Lady Foster said, that the technology might have been faulty, but I shall not make any inference of what the issue was.

I was asked how many passports have been issued so far this calendar year. The answer is 3.3 million, and I understand that in March and April alone 2 million were processed, which is quite a number. I will need to write on the fixed and marginal costs regarding missed priority appointments, but clearly there is a cost for someone making an appointment and not turning up. On the question of staffing, no staff were furloughed during Covid; staff were redeployed to other priority government work in the Home Office—for example, dealing with the EU settlement scheme and asylum—and to DWP, working on universal credit.

Sopra Steria has doubled its workforce in supporting HMPO since the start of 2022, alongside opening up a number of new processing centres. Its efforts have enabled the registration of applications and supporting documents on our system and the return of supporting documents to keep pace with this unprecedented demand. We raised concerns with the provider of the passport advice line, Teleperformance, about its delivery and, in response, it is urgently working to add additional staff, with 500 due to be added by mid-June.

On the argument about three months versus six months, it varies, apparently. Not to recuse myself from the information that I gave on the Floor of the House—and I will look into it more thoroughly—I actually thought a letter might be on its way to the noble Lord by now. Apparently, it is six months for Turkey and three months for Spain, but I will give the noble Lord a proper answer on that, because I, too, looked at the GOV.UK website, but I was not entirely sure whether I was right, or the noble Lord was, at the end of it.

[Lord Paddick (LD)]

Obviously, Turkey is not a member of the European Union and is not in Schengen. There is one rule for all EU or Schengen countries, including places such as Norway and Iceland, which is three months from departure.

[Baroness Williams of Trafford (Con)]

I am not going to disagree with the noble Lord. I would just like to give him a comprehensive picture, including on whether it is different if you are going into or coming out of the EU.

The noble Lord, Lord Paddick, often goes on about the costs versus the profit that the Home Office makes. We do not make a profit. The cost of the passport goes towards our border system; it is not to make a profit. As I said, I will get back to him on costs. I can confirm that if you have paid a premium, you get your money back if your passport does not arrive in time. I will have to get back to him on children, because I do not know the answer. On what is not refunded on missing an appointment, it is not the costs of the application but the booking fee, which is £30—as I understand it from the officials behind me.

[Lord Paddick (LD)]

My understanding is that if you cancel within 48 hours, you give up the booking fee. If you do not cancel and do not turn up, you forfeit the whole amount: the standard application fee and the premium. In that case, the Passport Office will not be involved in the cost of producing a passport; should that not be refunded?

[Baroness Williams of Trafford (Con)]

I did not think that was the case, but I am not going to contradict the noble Lord; I will check. I thought it was just the booking fee that you did not get back; I will double check.

I think I have answered all the questions. I have just one last point on what we did back last year. We started notifying customers by text—I think I said that on the Floor of the House a couple of weeks ago—that their passport was approaching its expiry date. We have sent some 5 million text messages to customers who hold or are about to hold an expired passport.

[Lord Paddick (LD)]

I have one further question as a result of what the Minister just said. I renewed my passport early because I had to change details in it, so my passport is valid for 13 years, but it is valid for only 10 years for entry to the European Union—you cannot have a passport valid for more than 10 years. Is the Passport Office sending text messages when a passport is approaching 10 years from date of issue or when it is due to expire?

[Baroness Williams of Trafford (Con)]

That is a very good question. I would have thought it would be at the 10-year point, but the noble Lord is absolutely right. If there are 13 years on the passport, would it send it after 13 years, and therefore your passport will be three years out of date? I will find out.