Households to pay more for BBC TV licence, government confirms
Households across the country will see their bills rise after the Labour government increased the TV licence fee that funds the BBC.
The Department of Culture, Media and Sport said on Friday that the annual levy will be increased to £180 from 1 April. This marks a £5.50 yearly increase.
The move follows rules brought in under the 2022 Licence Fee Settlement that dictated the fee would track headline inflation until the current BBC Charter Period concludes at the end of 2027.
Ministers argued the increase would help provide a firmer footing for the Corporation, enabling it to fulfil its public service obligations.
The UK TV licence acts as a legal permit that must be acquired to watch or record live programmes on any device and be held by anyone watching or recording broadcasted TV programmes. Last year, the levy brought in £3.8bn despite the number of households paying the fee continuing to fall.
Trump scandal rocks BBC
It comes after culture secretary Lisa Nandy kicked off a formal review of the BBC’s Royal Charter in December marking a broad consultation on trust and the long-term funding of the institution.
The BBC is estimated to generate around £5bn a year, employing more than 20,000 people and serving as the single biggest investor in UK-made content.
The review into the charter came as political pressure circled the 104-year-old broadcaster as President Donald Trump launched legal action over alleged misleading edits ahead of the 2024 election.
The crisis triggered by the President’s litigation pursuit caused the resignation of director general Tim Davie and news chief Deborah Turness.
The Corporation has issued an apology to Trump, but when Trump’s lawyer demanded compensation or else it would file a lawsuit, the BBC refused to comply leading to the President launching a $10bn suit in Florida.
A DCMS statement said: “The Government recognises the financial pressures on households and is committed to ensuring the BBC’s funding model is sustainable, fair and affordable.
“The Government has committed to the licence fee for the remainder of this charter period.
“To support the public with the cost of the TV licence, we will also continue to support the simple payment plan to spread payments through smaller instalments.” The licence remains free for over-75s on pension credit.