The UK Space Agency is set to undergo a major transformation as it becomes part of the Department for Science, Innovation and Technology (DSIT) by April 2026.
The move is designed to cut duplication, reduce bureaucracy, and strengthen ministerial oversight, ensuring that public accountability sits at the heart of Britain’s growing space programme.
The new arrangement will preserve the UK Space Agency’s name and brand while combining the expertise of both organisations.
This integration will bring policymakers and delivery teams under one roof, aligning strategy with execution to accelerate progress in the UK space sector.
UK Space Minister Sir Chris Bryant highlighted the significance of the move: “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.
“The aims for growth and security at the heart of our Plan for Change can’t be met without a vibrant space sector.
“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.”
Industry recommendations point to a £2.7bn market
The announcement coincides with the release of more than 60 recommendations from industry leaders on how to improve regulation for advanced space missions.
These include Rendezvous and Proximity Operations (RPO), where spacecraft work together in orbit – a capability projected to unlock a £2.7bn global market by 2031.
With the right regulatory framework, UK companies could secure up to a quarter of this market, pioneering technologies such as in-orbit servicing, assembly, and manufacturing.
Such advances will extend the lifespan of satellites, reduce orbital debris, and lay the groundwork for new space infrastructure.
Tackling bureaucracy across government
The integration of the UK Space Agency into DSIT forms part of a wider government initiative to review and reform Arms Length Bodies.
Ministers have already confirmed that NHS England, the largest quango in the world, will be abolished under the same drive to eliminate duplication and strengthen accountability.
Founded in 2010, the UK Space Agency currently operates as an executive agency of DSIT. In 2024/25 alone, it helped to catalyse at least £2.2bn in investment and revenue for the space sector.
Officials confirmed that both organisations will continue close collaboration during the transition period to ensure industry stability.
UK Space Agency CEO Dr Paul Bate added: “I strongly welcome this improved approach to achieving the government’s space ambitions. 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.”
“We will continue to deliver, while reducing duplication and ensuring we work even more closely with Ministers to support the UK space sector, and the country.”
Sandbox testing: Paving the way for innovation
A key element of this new strategy is regulatory innovation. The Stage 1 Report from the UK’s Regulatory Sandbox for RPO missions has now been published, led by Astroscale, ClearSpace, and D-Orbit in collaboration with the Civil Aviation Authority, the UK Space Agency, and DSIT.
The sandbox approach creates controlled environments where new technologies can be tested safely while regulators refine rules in real time. This process helps identify bottlenecks, reduce uncertainty for investors, and ensure regulations evolve alongside innovation.
The report’s findings will directly support the UK’s first active debris removal mission, scheduled for launch in 2028. This landmark project will demonstrate the technology needed to capture and remove defunct satellites, an essential step toward securing sustainable access to orbit.
A global opportunity for the UK space industry
Experts believe the UK space sector is uniquely positioned to lead the charge in new orbital services such as satellite refuelling, repair, and debris clearance.
By shaping forward-looking regulations and cutting unnecessary bureaucracy, the government aims to create a competitive advantage for British businesses in a global market expected to expand rapidly in the decades ahead.
The merger of the UK Space Agency into DSIT is therefore more than a structural change – it represents a commitment to harnessing innovation, investment, and international leadership in space.
As one of the fastest-growing industries in the UK, the space sector is poised to deliver not only economic growth but also the technologies essential for future security and sustainability.
