There is this creaping 'requirement' to have a passport, in part driven by the positive ID requirements of the Proceeds of Crimes Act 2003. Banks and other institutions have interpreted this need to ID customers by passport solely as 'the law'. A few years ago I had an argument with a well-known bank about this requirement. We were overseas and taking out a mortgage in Sterling with our existing bank for a house in Wootton Bassett, as it happened. The bank demanded that we 'surrendered' our passports as proof of ID to ensure that we weren't money-laundering. I refused to hand over my passport - only Police and Immigration officials can request it. I won my argument, especially when I obtained the recording of the calls from the bank which were of a threatening nature. The bank also paid me a substantial ex-gratia payment for 'making it up as they went along'.
Banks only need to be satisfied of the bone fides of the customer. Bearing in mind we had been their customer for 10 years at that point, I felt that they had demonstrated due diligence.
Fast forward a couple of years and we went to sell said house and the Estate agent asked for copies of our passports. I refused and gave her a copy of my council tax bill instead. This, apparently, was most irregular and the agency, part of a well-known chain, started to get rather difficult and quoted the 'law' about having to present a passport. Needless to say I won the argument and the firm agreed to half their commission, as I had caught them out for being thoroughly unprofessional.
In sum, unless you intend to travel to exotic climes, eg France, there is no requirement for British Subjects to have a passport, moreover no requirement to hand it over to those unauthorised to receive it.
Last edited by Whenurhappy; 12th Apr 2013 at 05:54.