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BBC needs to be ‘realistic’ about fee hike, says media secretary Lucy Frazer

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TMT Reporter

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Earlier this week, Abu Dhabi-backed investment fund Redbird IMI formally withdrew its offer for the Telegraph and launched a sale of it.
Earlier this week, Abu Dhabi-backed investment fund Redbird IMI formally withdrew its offer for the Telegraph and launched a sale of it.

Media secretary Lucy Frazer has urged the BBC to be more “realistic” about what people can afford to pay for the TV licence fee, echoing the Prime Minister’s comments.

The freeze on the licence fee at £159 for the past two years is set to be reviewed post-April 2024 and would go up by about £15, aligning with inflation.

“We’re in a position where people are struggling with the cost of living,” Frazer told Times Radio, “and as a Government, we tried very hard to make sure that those costs are low. And the licence fee is due to rise, although we froze it for two years.

“But as it rises, the BBC needs to be realistic about how much it can rise by. We want to make sure we protect licence fee payers and make sure that it just rises at an amount that people can afford.”

Frazer also suggested to Sky News that the licence fee could rise but only by a below-inflation increase.

Asked if she was, in effect, confirming a lower increase, Frazer only said: “I’m concerned about that level of rise.”

The BBC is restructuring itself as it grapples with financial constraints. The publicly-funded broadcaster has laid out plans to save £500m, as it deals with a two-year license fee freeze and inflationary pressures.

BBC News At One will extend to an hour but relocate to Salford, while BBC Breakfast will gain an extra 15 minutes.

But the broadcaster is shortening its Newsnight programme to 30 minutes and axing half of its 60 staff working on that show. 

Frazer’s comments echo those of Rishi Sunak’s last week. Speaking during a trip to Dubai for the Cop28 summit, Sunak said: “The BBC should be realistic about what it can expect people to pay at a time like this.”

A BBC spokesperson said: “The Government and BBC agreed a six-year licence fee settlement in January 2022, which froze the licence fee for two years with increases in line with inflation from 2024.

“As is usual practice the Government sets and confirms the cost of a licence each year and this remains unconfirmed for 2024/25. The BBC will continue to focus on what it does best: working to deliver world-class content and providing great value for all audiences.”