The UK government has announced that the UK Space Agency (UKSA) will merge with the Department for Science, Innovation and Technology (DSIT) by April 2026. The move is part of a wider reform aimed at streamlining government operations, cutting red tape, and strengthening Britain’s growing £17 billion space sector.
A unified approach to UK space policy
The UKSA, which has operated as an executive agency since 2010, will now sit fully within DSIT as a specialised unit. Ministers say the merger will “eliminate duplication, improve efficiency, and ensure clear oversight of national space policy.”
According to official figures, the UK space industry contributes over £17.5 billion annually to the economy and supports nearly 50,000 highly skilled jobs, with thousands more in the supply chain. The merger is designed to give the sector a single, coordinated voice in government while improving alignment between civil, defence, and commercial space interests.
Alongside the merger, industry leaders have issued more than 60 recommendations to strengthen regulation of future space missions.
These include Rendezvous and Proximity Operations (RPO) — orbital manoeuvres that allow spacecraft to work together in orbit. According to the UKspace IOSM Priorities Paper, this market could be worth £2.7 billion by 2031.
Industry reaction
Industry analysts have described the move as a “clear signal of intent” from government. By integrating space policy under DSIT, officials hope to accelerate innovation in areas such as satellite technology, launch services, and Earth observation, while also supporting the UK’s ambitions to establish a competitive domestic launch capability from spaceports in Scotland and Cornwall.
For professionals, the opportunities are just as significant. The merger is expected to create new UK space sector jobs, with demand rising in key areas such as:
- Satellite communications and navigation systems
- Space engineering and advanced manufacturing
- Artificial intelligence and data analytics
- Cybersecurity and space sustainability
UK Space Agency CEO Dr Paul Bate said:
“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.”
Unanswered questions
However, the merger also brings uncertainty, with many UKSA employees facing the prospect of job losses as a result of the transition. The agency has been instrumental in supporting UK space companies and has played a pivotal role in elevating the nation’s standing on the global stage. As the sector navigates this change, we look to the government for clarity on how it will protect the progress achieved and build upon the strong foundations established by the UKSA.
Join the future of UK space
The UKSA–DSIT merger is a bold step that could reshape the future of the UK space industry. By consolidating leadership, encouraging investment, and focusing on innovation, the government is laying the foundations for growth in one of the world’s most exciting sectors.
For professionals and businesses alike, this is the time to prepare, adapt, and seize the opportunities ahead.
If you’re a jobseeker exploring UK space sector jobs or UK satellite industry careers, or a business seeking specialist support for space recruitment in the UK, our team is here to connect talent with opportunity.