Committee publication · Correspondence · 9 June 2026
Letter from the Permanent Secretary relating to the Main Estimates 2026 - 27 08.06.2026
From: Home Affairs Committee
Summary
Permanent Secretary Gareth Davies responds to Home Affairs Committee questions on the Home Office Main Estimates 2026/27, submitted 8 June 2026. The letter clarifies budget assumptions across six areas: visa/passport income and cost changes (net £1bn increase), asylum group restructuring and support costs (£171.9m net increase offset by £388m support savings), capital funding for asylum accommodation, McCloud pension claims, places of worship security funding (£73.4m total, including £21.5m uplift), and National Crime Agency budget increases.
Key findings
- Visa, Passport, Citizenship and Resettlement budget forecast to generate additional £1 billion, driven by £330m fee increases, £361m net income rise, and £652.1m operational cost reduction primarily from internal restructure moving £510m to Asylum Group.
- Asylum Group resource costs increased £171.9m year-on-year, primarily due to £510m transfer of asylum caseworker budgets from other Home Office areas and £50m allocated for large site accommodation and Hotel Exit priorities, partially offset by £388m reduction in asylum support.
- Places of worship protective security funding totals £73.4m for 2026/27 (£28.4m Jewish Community, £40m Mosques, £5m other faiths), with additional £4m agreed for Jewish Community scheme following Golders Green attack, plus £21.5m uplift to maintain 2025/26 levels and fund increased demand.
- Home Office McCloud 'injury to feelings' claims reflect large-scale, nationally-coordinated pension schemes covering uniformed workforces with organised litigation; other departments face fewer claims due to different scheme structures and litigant behaviour.
- National Crime Agency budget increase from within Home Office overall settlement rather than Spending Review provision, reflecting rising agency costs and operational maintenance priorities.
Tone
ProceduralTopics
Key actors
Gareth Davies, Permanent Secretary, Dame Karen Bradley, Chair of Home Affairs Select Committee, Home Office, Ministry of Housing, Communities and Local Government, National Crime Agency, HM Treasury
Notable line
“The Home Office is the responsible authority for large, nationally-coordinated schemes covering uniformed workforces, where claimant firms have pursued highly organised litigation …”
Key Quotes
“The net income increase of £361 m is a result of fee increases of c£330m plus some demand increases, partly offset by the internal restructure which moved income relating to asylum and human rights caseworking into Asylum Group.”
“The reduction in operational costs is mainly a result of internal restructure, where c£510m moved into the Asylum Group areas”
“Although the remedy legislation addresses financial loss arising from the discriminatory transitional protections, it does not extinguish injury to feelings 3 claims under the Equality Act 2010 for the period prior to implementation.”
“This funding will bolster security at vulnerable places of worship, faith schools and community centres and will help to meet more of the demand and provide greater protection and reassurance to faith communities.”
“As part of this process, the Home Secretary agreed to provide additional funding to the National Crime Agency from within the department's overall settlement.”
Source · parliament.uk record ↗