Ah! Thank you, ksand24. I think my husband has been in America for so long he forgot about the NHS yearly charge. All that you mentioned makes perfect sense.
There's no NHS charge for him or your son because they are UK citizens... but you will need to pay it because you will have a visa (£600 upfront as part of your visa application).
My husband does have his original UK birth certificate. I wonder if for the purposes of working in the UK (until his renewed UK passport arrives) he can use this to establish that he is in fact a natural born citizen of the UK? In other words, can an original UK birth certificate serve as 'proof' of citizenship in the UK?
Yes, that should be okay... my concern is his initial entry into the UK - he really should have a UK passport, otherwise it may cause issues with immigration... such as them assuming he is a US citizen only and requiring him to have either a visa, or proof of being a tourist: a return ticket, evidence of a US job, home and family to return to in the US, proof he will not attempt to live or work in the UK etc.
Having his UK passport before he enters the UK would prevent a lot of potential hassle at the border.
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