Computer systems designed to support passport delivery have cost over four times their original £80m estimate, landing taxpayers with a bill of about £365m.
The massive overspend was revealed by Home Office minister Damian Green in an answer to a parliamentary question from Banff and Buchan Scottish National Party MP Eilidh Whiteford, who called an "absolute scandal".
Green said the contract with Siemens had been extended from 10 to 11 years and blamed the increase in costs on additional demand for passports, enhancements of the IT infrastructure and changes in business processes to accommodate changes in policy, responses to changed security requirements and customer service improvements.
Whiteford said: "As Labour meet for their [Liverpool] conference it is incredible that, as the people responsible for pouring this money down the drain initially, they now try and convince us that they have a credible plan for the economy. People will not be fooled.
"This week alone we have learned that hospitals in England could close as a result of Labour's crippling PFI legacy, that a £12bn NHS computer scheme has had to be scrapped and now that another scheme's IT project costs have trebled."
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