BBC licence fee set to rise less than expected next year
The BBC licence fee will rise from £159 to £169.50 next year, the culture and media secretary Lucy Frazer told ministers on Thursday.
The £10.50 hike will likely disappoint the publicly-funded broadcaster, which was expecting a £15 rise in April 2024, in line with inflation.
Speaking in the Commons, Frazer said the increase is instead based on the rate of inflation from September’s consumer prices index (CPI), which was 6.7 per cent.
She also announced a review of the BBC’s funding model.
“The review will look at how we can ensure the funding model is fair to the public, sustainable for the long term and supports the BBC’s vital role in growing our creative industries,” Frazer said.
In January 2022, the government froze the BBC’s licence fee for two years as part of a six-year settlement introduced to ease a cost of living squeeze.
Prime Minister Rishi Sunak recently said the BBC needs to be realistic about what people can currently afford to pay “at a time like this”. Frazer echoed his comments early this week.
Yesterday, she named Samir Shah, who has served as a non-executive director on the BBC board, as her preferred candidate to become the next chair of the broadcaster.