The UK's Passport Office is to be brought under Home Office control and made accountable to ministers, Home Secretary Theresa May has announced.
The decision follows a summer of chaos which saw thousands of holidaymakers affected by a backlog in applications, which peaked at 537,663 in late June.
The changes mean Passport Office's chief executive Paul Pugh has effectively been sacked.
He will remain until a successor - working as director general - is named.
Mrs May had been forced to introduce a number of emergency measures to tackle the backlog, which is now around 80,000.
But earlier this month, the Home Affairs Committee said passport applicants who paid more than £30 extra for a "fast-track" service had been "exploited" and should receive a refund.
Announcing the changes, Mrs May said: "As the events of the summer showed, it is essential that HMPO is run as efficiently as possible and is as accountable as possible"
The move to the Home Office will take effect from 1 October.
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