The UK Space Agency is set to become part of the Department for Science, Innovation and Technology (DSIT) as part of a move designed to cut duplication, reduce bureaucracy, and put public accountability at the heart of decision-making.
The change will bring together the people who shape space policy and those who deliver it. This, the Government claims, will cut any duplication that exists and ensure decisions are made with clear ministerial oversight.
Taking place by April 2026, the new unit will keep the UK Space Agency (UKSA) name and brand and will be staffed by experts from both organisations.
On 20 August, over 60 recommendations from industry leaders were published on how to improve regulation for space missions, including Rendezvous and Proximity Operations (RPO) – where spacecraft work together in orbit.
These
missions are key to unlocking a future market worth £2.7 billion by 2031 (according to the UKspace IOSM Priorities Paper).
With the right support, the Government asserts that the UK space firms could capture a quarter of the global market for in-orbit servicing, assembly and manufacturing. This will help to clean up space, extend the life of satellites, and build new infrastructure above Earth.
Space Minister Sir Chris Bryant said: “You don’t need to be a rocket scientist to see the importance of space to the British economy.
“This is a sector that pulls investment into the UK, and supports tens of thousands of skilled jobs right across the country, while nearly a fifth of our GDP is dependent on satellites.
“Bringing things in-house means we can bring much greater integration and focus to
everything we are doing while maintaining the scientific expertise and the immense ambition of the sector.”
“I strongly welcome this improved approach to achieving the government’s space ambitions,” commented UK Space Agency CEO Dr Paul Bate.
“Having a single unit with a golden thread through strategy, policy and delivery will make it faster and easier to translate the nation’s space goals into reality.
“In coming together, the UK Space Agency and space policy colleagues are building on the firm foundations of economic growth and capability development laid in recent years, including cutting-edge missions, major national programmes, and the regulations that enable UK launch and leadership in space sustainability.
However, other supporters of the independent space agency have raised concerns about the move, with Dr Simeon Barber of the Open University telling the BBC: "Around
the world countries have been recognising the importance of space by setting up national space agencies, and for the Government to be scrapping ours seems like a backward step.”
This sentiment was echoed by space tech startup Magdrive, “The closure of the UK Space Agency as an independent body is deeply concerning for the UK space sector. While the government positions this as a cost-saving and efficiency measure, the reality is that dissolving the agency risks undoing more than a decade of hard-won progress.
“UKSA has provided focus, coordination, and credibility on the global stage. It helped deliver milestones such as Tim Peake’s mission, the growth of the UK’s small satellite industry, and the emergence of a domestic launch capability.
“Crucially, it gave innovative companies confidence that space was a government priority worth investing
in. Folding this into a wider department may bring ministerial oversight, but it also risks space being lost among competing agendas.
“The message this sends is stark: at a time when other nations are elevating space, the UK is downgrading it.
"We urge the Government to ensure this move does not sideline a sector worth £18.6 billion a year, and to make clear that space will continue to receive the priority, funding, and strategic clarity it urgently requires.”
The UK Space Agency was founded in 2010 and currently operates as an executive agency of DSIT. It catalysed investment and revenue of at least £2.2 billion for the UK space sector in 2024/2025.
DSIT and the Agency will continue to work closely together over the coming months to support the UK space sector and ensure a smooth transition to the new arrangements. Further practical details on the merger will be announced in due course.