The government has confirmed that the UK Space Agency (UKSA) will be dissolved as an independent body and folded into the Department for Science, Innovation and Technology (DSIT) from April 2026. Ministers say the move will reduce duplication, improve oversight, and cut costs as part of wider reforms to streamline public bodies.

Established in 2010, the UKSA has been central to shaping the country’s space strategy, supporting satellite development, and building international partnerships. During its existence it has overseen milestones including Tim Peake’s mission to the International Space Station and the creation of Britain’s own small satellite launch capability. The UK space industry today contributes an estimated £18.6bn annually to the economy and supports 55,000 jobs nationwide.

While ministers insist the sector will remain a national priority, some scientists fear the merger could slow progress. Dr Simeon Barber of the Open University warned that dismantling the agency risked “losing focus” at a time when global competitors are strengthening their space ambitions. He described the decision as “a backward step” that could hinder innovation and damage the UK’s standing in the long term.

Space minister Sir Chris Bryant defended the changes, saying they would bring “greater integration and focus” while retaining expertise under the UKSA name within DSIT. However, critics argue that embedding the agency inside a government department could stifle its proactive approach and make the sector more vulnerable to bureaucracy.