Civil Registration Fees Dan Rogers – GRO Steve Lloyd – National Panel for Registration Local Registration Services Association 14 November 2018

Background & Context GRO clearly recognise the challenging funding environment that many registration districts have been operating within. Have worked closely with the National Panel for Registration (NPR), Ministers and HM Treasury (HMT) to baseline the funding challenge; ensure that it forms part of the fees and funding narrative; and take steps to provide greater opportunities to ensure services are funded through fee income.

Further Context Work undertaken this year with NPR and sub-groups has confirmed that the majority of services reviewed have significant reliance on funding from certificate income and marriage services (no surprise!). Also that there are growing pressures on services to either be self sufficient or become net contributors to their Local Authority. Therefore, we sharpen our focus on what we can do to facilitate developing sustainable financial models for the LRS that align to HMT Managing Public Money principles, that can stand up to the challenge of scrutiny – including all allowable costs but not overstepping mark. Recent HMT announcements to seek to reduce the cost of marriage put pressure on wide scale marriage fee increases, though we shouldn’t be afraid to expose where cost exceeds fee. Immigration Act fees were simply the first step in enhancing LRS support via statutory fees.

Headline progress over last 12 months November 2017 – Introduction of fees for the LRS and GRO for services previously provided for no fee, under Immigration Act 2016 powers. For the LRS: Corrections £75 Clearance of overseas divorces £50 Space 17 amendments £40 Additionally, a fee to triage applications that required GRO intervention: corrections £32, overseas divorces £28 July 2018 – Introduction of fees for the LRS and GRO for data sharing across the public sector. Agreement with HMT to set fees as hourly rates as scope of work required difficult to quantify. LRS rate £57 (GRO rate £52) Data sharing fees set using new overhead absorption rates.

Fees & Funding Joint Working Group Steve Lloyd Hand over to Steve to give a NPR perspective of the FFJWG

Progress behind the headlines New Overhead Rates – Work undertaken with NPR representatives to re-examine allocation of overheads and ensure they are fully captured in fee calculations. This has been endorsed by HMT. Overhead rates have increased from 43.2% for Immigration Act fees to 135.31% for Data Sharing. This is the new baseline. Income & Expenditure Tool - Used & tested to identify core income streams and future financial impacts. This will now be shared nationally. VAT – Working with Home Office VAT specialists & HMRC to develop scenarios for non-statutory fees to be incorporated into HMRC guidance. This work will be published once HMRC finalise thinking.

Next Steps – Certificate Fees We intend to introduce revised certificate fees in Spring 2019. We have worked with NPR to establish the most appropriate direction of travel. We have approval of proposals from Ministers & HMT and hope to lay regulations imminently. Until regulations are signed and laid we cannot confirm fee levels. Fee levels incorporate revised overhead rates and a refresh of costs - given that fees have remained static since 2010. GRO and LRS fee levels will be aligned. There will be a single standard certificate fee for GRO and the LRS (end of 3 tier fee structure). There will also be a single statutory priority fee for GRO and the LRS. We anticipate that these changes will bring a significant national revenue boost for the LRS.

So, where do we want to go next? We continue to look to the Immigration Act and other primary legislation to provide further funding opportunities for both GRO and the LRS. Which non-charged for statutory services should we seek to include in the next stage of fees implementation?

Finally Any Questions