Conclusion 20

The NAO reported the charged services it examined did not fully fulfil their disclosure requirements on areas such as unit costs, the cost-recovery targets, objectives, the extent and explanation for over or under-recovery.39 The lack of transparency affects public confidence and understanding of what they are paying for. The Treasury agree transparency is essential and that departments should clearly explain their fees, confirm it has appropriate consents, and document any changes made.40 We asked how this works in practice to ensure transparency for users that all the cost elements they are being charged for relate to the service. We noted that there is a higher risk, when fees over recover, to fund broader department priorities without disclosing this clearly to fee payers. The Treasury told us that such decisions must be made transparently, with departments clearly distinguishing between the cost of providing the core service and any supplementary policy-related charges approved by Parliament.41 Written evidence we received from Amnesty International UK and Migrant Voice also highlighted when services, such as visas, over-recover, unrelated costs should not be passed onto fee payers.42