Committee publication · Correspondence · 21 May 2026 · HC 671

Correspondence from Minister Lloyd, Parliamentary Under Secretary of State, Department for Science, Innovation & Technology regarding merger of UK Sace Agency with DSIT Space Directorate, dated 11 May 2026

From: Scottish Affairs Committee

Summary

Baroness Lloyd informs the Scottish Affairs Committee Chair that the UK Space Agency has merged with DSIT's Space Directorate effective 1 April 2026, forming a new directorate within DSIT led by Rebecca Evernden. The merger, stemming from the Cabinet Office's 2025 review of Arm's Length Bodies, aims to reduce duplication, cut bureaucracy, and bring space policy closer to ministers while maintaining the UK Space Agency brand and capability.

Key findings

  • UK Space Agency ceased to be an independent Executive Agency on 1 April 2026; all functions integrated into DSIT with technical systems integration due by 1 June 2026.
  • New directorate retains UK Space Agency name and brand, led by Rebecca Evernden as Director, uniting civil space policy, strategy, and delivery within government.
  • Merger aims to reduce bureaucracy, eliminate duplication, improve coordination across space policy and programmes, and embed operational expertise at ministerial level.
  • New unit's responsibilities span government space strategy, civil space policy development, cross-government governance, programme delivery, science base support, and international space engagement.
  • Every £1 of UK public investment in ESA programmes has generated £7.49 in direct economic benefits to the UK economy.

Tone

Procedural

Topics

space-policygovernment-reorganisationpublic-accountabilityeconomic-growthscience-innovation

Key actors

Baroness Lloyd, Patricia Ferguson MP, Rebecca Evernden, Department for Science, Innovation & Technology (DSIT), UK Space Agency, Cabinet Office, European Space Agency (ESA), Ministry of Defence (MoD)

Notable line

The merging of the UK Space Agency with the Space Directorate within DSIT, unites space policy, strategy and delivery, enabling us to bring this important issue closer to ministers and cut duplication, reduce bureaucracy, and put public accountability at the heart of decision-making.

Key Quotes

Following the Cabinet Office's review of Arm's Length Bodies, commissioned in April 2025 to drive efficiency and reduce bureaucracy as part of Prime Minister's Plan for Change, the decision was taken by ministers to merge the UK Space Agency with DSIT's Sp ace Directorate from 1 April 2026 …
Baroness Lloyd · Announcing the merger decision
As of 1 April 2026, UK Space Agency ceased to be an Executive Agency, with all functions integrated into DSIT and ICS, with final technical systems integration due to complete on 1 June
Baroness Lloyd · Describing the structural change
The merging of the UK Space Agency with the Space Directorate within DSIT, unites space policy, strategy and delivery, enabling us to bring this important issue closer to ministers and cut duplication, reduce bureaucracy, and put public accountability at the heart of decision-making.
Baroness Lloyd · Justifying the merger
The UK Space Agency will continue to catalyse significant investment and revenue in the UK space sector, as well as support our international partners at the European Space Agency (ESA), recognising that every £1 public investment in ESA programmes has led to £7.49 of direct benefits to the UK economy.
Baroness Lloyd · Affirming continued economic impact
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Source · parliament.uk record ↗