10
Government services consistently fail to meet cost-recovery targets, leading to persistent financial imbalances.
Conclusion
Over the five-year period from 2019-20 to 2023-24, none of the seven government services reviewed consistently met their cost-recovery targets. Poor cost-recovery persisting over time results in a build-up of surplus and deficits in some services. Both passports and family court fees have repeatedly missed their cost-recovery targets by more than 10% each year over this five-year period.18 We asked the Treasury how it will help government bodies manage the persistent deficits and surpluses more proactively in the future. The Treasury told us that it plans to 13 Qq 26, 28, 30 14 Qq 27-28; C&AG’s Report, para 3.3 15 Qq 27, 28, 46 16 C&AG’s Report, paras 8, 2.21 17 Qq 26, 46, 18 C&AG’s Report, para 2.21 9 introduce more regular reporting, promote greater professionalism, and standardise practices to ensure a more systematic approach to fees and recovering costs.19
Government Response
A response document is linked to this report, dated 1 April 2026. Response attribution to this conclusion has not been verified. Read the response document.
Source
Committee
Public Accounts Committee
Report
57th Report - Government services: Generating income
10 Dec 2025
HC 890
Addressee Bodies
HM Treasury
Timeline
Recommendation age
0.8 yr
Report published
10 Dec 2025