The cost of a TV licence will increase by £5.50 to £180 from 1 April, the UK government has announced.
The licence fee, which funds BBC programmes and services, currently stands at £174.50. Under an agreement reached in 2022, the fee is set to rise in line with inflation each year until 2027.
The government recently launched a public consultation on the future of the BBC ahead of the renewal of its Royal Charter at the end of 2027. In its green paper, the government said it was “keeping an open mind about the future of BBC funding” and had not yet identified a preferred model.
Options being considered include replacing the current flat-rate licence fee with a system of different charges based on which BBC services people use. The consultation document also raises the possibility of moving to an advertising- or subscription-based model to replace the existing funding structure.
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Reacting to the announcement, a BBC spokesperson said the licence fee provides the broadcaster with the financial stability needed to deliver services to audiences and support the UK’s creative industries.
“The licence fee funds the full range of BBC services and helps us deliver trusted news, the best homegrown storytelling and unmissable content that brings people together,” the spokesperson said.
The BBC added that it welcomed the ongoing debate on its future funding arrangements beyond 2027 and reiterated its call for reforms that would ensure a sustainably funded and independent public service broadcaster for future generations.
A spokesperson for the Department for Culture, Media and Sport (DCMS) said the government recognised the financial pressures facing households and was committed to ensuring that the BBC’s funding model remains sustainable, fair and affordable.
“The government has committed to the licence fee for the remainder of this charter period,” the spokesperson said, adding that a simple payment plan would continue to allow people to spread the cost through smaller instalments.
Free TV licences will remain available to over-75s receiving pension credit, while reduced fees apply to care home residents and blind or severely sight-impaired individuals.
The government said the licence fee increase was calculated using an annual inflation rate rather than a monthly rate, which has been used in some previous years.
A TV licence is required for UK households that watch or stream live television on any channel, use BBC iPlayer, or record programmes as they are being broadcast. The rules apply to all devices, including televisions, laptops, mobile phones and tablets.
Meanwhile, the cost of a black-and-white TV licence will also rise by £2, from £58.50 to £60.50, in the new financial year.
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