Benefit claims are not in the same category of service so you would expect a different economic model so I wouldn’t consider that relevant to this post.
In short my point was that any purchase where operating expense per unit is greater than consumer purchase price per unit is positive to the consumer, detrimental to the provider.
For me applying for the first time I don’t have a view on whether the price is right or wrong, only that I was expecting it to be more expensive than it is as I would perceive that with physical visits etc the operating expense is high - especially when compared as you say to a passport which is almost the same price but I would guess has a lot lower expense