People applying for a new passport will now save £5.
The new cost for an adult standard passport will be £72.50 - a reduction of £5 from the previous cost of £77.50. The price of a new passport will stay in place until March 2015.
The passport price reduction is being introduced after a restructuring programme at the Identity and Passport Service (IPS), resulting in savings of £40 million in the last financial year.
The UK passport, which is valid for 10 years, is cheaper than the equivalent in Australia (£152) and the USA (£88.36). It is also cheaper than New Zealand, where a five year passport is £77.76.
Immigration Minister Damian Green said: ‘It is good news that IPS have made savings which will be passed on to the public who use their services.
‘This reduction is due to the hard work of all at IPS and I commend them for their dedication in delivering a stronger and leaner service in these tough economic times.’
IPS Chief Executive Sarah Rapson said: ‘The UK passport is one of the most trusted and secure documents in the world and last year we produced 5.4 million.
‘I am pleased that we have also been able to deliver a more efficient service whilst maintaining a high standard.
‘We are committed to giving fee payers better value for money and this reduction is testament to the hard work of all involved here.’
The savings mean that the majority of passport customers, including children and those who pay extra for a Premium or Fast Track service, will benefit from a passport fee reduction as follows:
New passport prices
Customer Service Type Current Fee New Fee Reduction (£)
Adult 32 page Standard 77.50 72.50 5.00
Adult 48 page Standard 90.50 85.50 5.00
Adult 32 page Fast Track (7 day) 112.50 103.00 9.50
Adult 48 page Fast Track (7 day) 120.50 111.00 9.50
Adult 32 page Premium (4 hours) 129.50 128.00 1.50
Adult 48 page Premium (4 hours) 138.50 137.00 1.50
Child Standard 49.00 46.00 3.00
Child Fast Track (7 day) 96.50 87.00 9.50
Child Premium (4 hours) 109.50 106.50 3.00