CAA starts consultation on charges for 2026-27

Some charges needed to fund the UK aviation regulator next year could rise well above the rate of inflation.

 

The disclosure comes as part of a consultation into proposed changes to the Civil Aviation Authority’s charging for the 2026-27 financial year which runs until December 22.

 

No one specific rate has been suggested, with the pricing approach depending on sector.

 

Most would have increases of around 4.7%, although generally the rise is between 4.1% - in line with inflation - and 7.1%, with a “very small number” of charges extending above that for specific needs.

 

The CAA insists the proposed overall increase is lower than in previous years, “reflecting a balance between delivering on the priorities for the sector and the costs of those services”.

 

The rises being put forward would increase investment across the CAA’s regulatory areas, “with a focus on protecting consumers and the public, enabling innovation and growth, and enhancing our organisation”, the consultation document says.

 

The updated charges will also help expand the CAA’s consumer protection programme, including enforcement and dispute resolution.

 

Charges for the Atol scheme are proposed to rise by 4.1%, together with “minor amendments” designed to to enhance the efficiency of the renewal process and encourage early, accurate submissions. 

 

"While not intended to increase overall charges for Atol holders, the changes aim to support more effective working practices by aligning fees with the actual work undertaken, correcting structural inconsistencies, and improving transparency around applicable charges,” the consultation paper states. 

 

"By incentivising timely applications and addressing areas of under-recovery, the proposals help ease pressure on CAA resources and promote a fairer, more consistent charging structure.”

 

New charges will be introduced to cover a “small number of activities” identified in the Atol team which are currently provided without a fee. 

 

“This is not consistent with our funding principles of sustainability and equity”, the CAA notes.

 

Other proposed changes “to support the timely submission of applications to reduce these operational bottlenecks” include a discounted early application fee of £630 for small franchises, the introduction of fixed charges for late applications and amending early application fees.

 

Applications received in the normal renewal window will continue to be charged at the standard rate.

 

The CAA is also proposes correcting fee anomalies covering small business and standard Atols.

 

“We propose to remove these structural anomalies by adjusting the associated variation charges to ensure parity in the fee structure,” the consultation suggests.

 

The regulator points out that it has generated efficiency savings over the last three years, increasing to more than £16 million for the current financial year.

 

“This equates to over 10% of our total cost base. We have achieved this through holding cost increases below inflation and removing unnecessary costs,” the consultation says. 

 

Chief financial and operating offer Tracey Martin said: “Effective regulation helps enable the safe growth of the aerospace sector.  

 

“Alongside the need to invest in our services and capabilities, we also recognise the financial pressures facing the aerospace sector.

 

“These proposals for our 2026-27 charges reflect what we’ve heard from stakeholders and show how we’re maintaining delivery of our core regulatory services and delivering value through efficiency and innovation.

 

“We’re encouraging feedback from all sectors we regulate, and we look forward to working with industry to shape the future of our services.”