Identity card costs soar by £400m

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Home Office figures showed the costs over 10 years were estimated to be £5.31 billion from 2006 to 2016, compared with £4.91 billion in the last calculation.

A further, separate estimate said the scheme would cost £5.55 billion over the 10 years from 2007 to 2017.

The department also published a separate estimate which said it will cost £200 million over 10 years to introduce the Government's plans to impose biometric identity documents on non-Europeans who apply to extend their leave to stay in the UK.

Outgoing Home Secretary John Reid published news of the increase on the day Prime Minister Tony Blair announced his resignation.

The update revealed that £510 million of Foreign Office consular costs had mistakenly been included in the last update, which the Home Secretary is required by law to deliver to Parliament every six months.

The £40 million-a-year increase is largely down to a sharp rise in operational costs from £4.62 billion over a decade to £5.25 billion.

"The factors are extra staff carrying out vetting, as well as extra anti-fraud measures," a Home Office spokesman said.