The Foreign Office has decided that the real cost of providing services should be charged to the user. Therefore if you get drunk and lose your passport, wallet and ticket and turn up at an Embassy demanding to get home, you will pay the true cost of getting you home (and you better believe it is expensive and a thankless task). Passports are the same. It costs x to run the whole operation, there are y passports issued each year so the cost per passport is x/y
I get through a 48 page passport every 12-16 months. However, I accept that I have to pay for each renewal (and living outside the UK it is more expensive and time consuming as it is my choice, and my need.