BBC Licence Fee to Rise Next Year, Culture Secretary Announces


Government Presses BBC to Settle on Lower Increase

The BBC licence fee will rise from £159 to £169.50 next year, according to Culture Secretary Lucy Frazer. The increase is in line with September’s 6.7% inflation rate, after ministers urged the broadcaster to settle for a lower hike. The announcement comes as Frazer launches a review into the future funding of the BBC.

Review to Explore Alternative Funding Models

The review, supported by a panel of independent experts from the broadcasting sector and wider business world, will examine various options for funding the BBC. It aims to secure the broadcaster’s long-term sustainability in an evolving media landscape, increased competition, and changing audience behavior. The review will also aim to reduce the burden on licence fee payers.

Government Implements Changes to Minimize Cost to Households

The licence fee increase for next year is lower than expected due to changes made by the government to minimize the impact on households. In 2022, the fee was frozen for two years to protect families from rising living costs. From April 2024, the fee will rise annually by inflation for the following four years.

Funding Review to Assess Sustainability of Current Model

Culture Secretary Lucy Frazer emphasized the need to address the challenges faced by the BBC in the changing media landscape. The funding review will take a closer look at the licence fee system and explore whether a reformed funding model could better support the national broadcaster. The goal is to ensure the BBC remains sustainable, affordable for audiences, and drives growth in the creative industries.

Additional Funding for BBC World Service

Earlier this year, the government provided an extra £20m to the BBC World Service as part of the Integrated Review. The funding aims to protect all 42 World Service language services, support English-language broadcasting, and counter disinformation.

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