Explanatory Notes

Identity Cards Act 2006

2006 CHAPTER 15

30 March 2006

Commentary on Sections

Fees and charges

Section 35: Fees in respect of functions carried out under Act

190.This section makes provision for the payment of fees.

191.Subsection (1) enables fees to be set for:

192.Subsection (2) allows regulations to be made allowing the payment of fees by instalments, for example schemes such as saving stamps.

193.Subsection (3) allows the Secretary of State in prescribing fees under subsection (1), to take into account the wider costs associated with the ID cards scheme. For instance, a charge may need to cover not just the issue of an ID card but also the costs of updating the Register when details such as address change, which may not necessarily incur an additional fee. This subsection also gives a power to charge different fees in different circumstances, to allow for example for a reduced fee for some cards or to cross-subsidise between different cards. Subsection (3)(d) also includes a power to take into account the cost of issuing ID cards in connection with the issue of designated documents. Subsection (3)(e) allows for expenses incurred in the provisions of consular services to be taken into account in setting fees, for example where a card was valid for travel this might be appropriate.

194.Subsection (4) provides that Treasury consent is required before regulations are made under subsection (1).

195.Subsection (5) allows for the fees for designated documents to cover the costs of dealing with matters under this Act (i.e. the Register and ID cards) when those matters are dealt with in relation to applications for, and the issuing of, designated documents. For example, charges for passports could be made using existing powers, and include the costs associated with the ID cards scheme.

196.Subsection (6) gives the Secretary of State the power to raise fees over a period which he thinks appropriate, which could be any time after the commencement of the power to charge including in advance of the introduction of ID cards.

197.Subsection (7) provides that on the first occasion that regulations are made on fees under subsection (1), the regulations will be subject to the affirmative resolution procedure. Subsequent regulations varying or adding to the fees would also be subject to the affirmative resolution procedure, except when the fee increase is only to take account of inflation. Those inflationary fee increases would be subject to the negative resolution procedure.

Section 36: Amendment of Consular Fees Act

198.Section 36 amends Section 1(4) of the Consular Fees Act 1980, to allow flexibility in the setting of fees for the carrying out of consular functions which includes the setting of passport fees. The amendment provides a power to set different levels of fees for different cases and to make exceptions for different types of case including an exemption from any fee. This would enable the cross-subsidy of passport fees between fees charged to different applicants. For example, this provision will provide a statutory basis for the issue of free passports which has already been introduced for those born on or before 2 September 1929 to be subsidised by charges made for other passports.

199.Section 44(5) provides for this section to come into force two months after this Act is passed. The fee setting powers in this amended section could be applied at any period after that time including in advance of the introduction of ID cards.

Section 37: Report to Parliament about likely costs of ID Cards scheme

200.This section provides that the Secretary of State must lay before Parliament six months after the Act receiving Royal Assent (i.e. by 30th September 2006) an estimate of the likely costs of the scheme for the next ten years (subsection (1)). A further report must be laid at least every six months, each report estimating the costs for the following ten years (subsection (2)). This includes expenditure on (a) the establishment and maintenance of the Register; (b) the issue, modification, renewal, replacement, re-issue and surrender of ID cards and (c) the provision to persons by the Secretary of State of information recorded in individuals’ entries in the Register (subsection (3)). It does not include estimated costs to other Government departments of making use of the scheme. The Secretary of State may exclude from the report anything which if published would prejudice securing the best value from the use of public money.