Source · Select Committees · Public Accounts Committee
Recommendation 15
15
Accepted
Slow fee amendment process prevents keeping pace with changing costs, especially during inflation.
Recommendation
The NAO reported that the current timing of the process can result in fees that fail to keep pace with changing costs, particularly during periods of high inflation.28 The Ministry of Justice (MoJ) informed us that its latest fee change took around six months to complete and it is exploring annual reviews incorporating routine inflationary adjustments.29 The Driver and Vehicle Licensing Agency (DVLA) described a multi-stage review and approval stages before changing fees using legislation, which it explained is time-consuming. It highlighted its use of the section 102 order of the Finance (no 2) Act 1987 referenced in Managing Public Money (MPM)30, which provides a degree of flexibility to balance costs across services and reduce the need for frequent fee changes.31
Government Response Summary
The Treasury will write to the Committee by May 2026 to set out proposals indicating the new arrangements to reduce the time and complexity of amending fees.
Government Response
Accepted
HM Government
Accepted
3.1 The government agrees with the Committee’s recommendation. Target implementation date: May 2026 3.2 The Treasury will write to the Committee by May 2026 to set out proposals indicating the new arrangements to reduce the time and complexity of amending fees.