TV licence fee to rise starting April as Government ensures sustainable funding for BBC, how much is it

The Government said the fee BBC licence will increase by £5 to £174.50 a year, equivalent to an extra 42p per month, in line with inflation until 2027. This follows a £10.50 rise earlier this year, which brought the current fee to £169.50.

The licence fee, which funds much of the BBC's operations, faced scrutiny under the Conservative government. It was frozen at £159 for two years before being increased at a rate lower than expected by the broadcaster.

In a written statement to Parliament, Culture Secretary Lisa Nandy said: "The BBC provides much-needed programming for households across the country, including children’s education, world-class entertainment and trusted news for all people in all parts of the UK. I want to see it thrive for decades to come."

She added: "Through the Charter Review, we will have an honest national conversation about the broadcaster’s long-term future, ensuring the BBC has a sustainable public funding model that supports its vital work but is also fair and responsive to those who pay for it."

The annual fee will rise in line with the Consumer Price Index (CPI) inflation rate. A review of the BBC's Royal Charter, including a public consultation, will explore long-term funding options to secure the broadcaster's future.

To support households facing financial difficulties, the Government is expanding the Simple Payment Plan (SPP), allowing an estimated 9,000 additional households per month to pay the licence fee in smaller fortnightly or monthly instalments.

The BBC, under financial strain, recently announced cost-cutting measures, including axing the in-depth interview program Hardtalk and reducing over 100 news roles.

A BBC spokesperson welcomed the increase, stating: "We welcome confirmation that the licence fee will increase in line with inflation next year. We want everyone to get value from the licence fee and we are committed to delivering trusted news, the best homegrown storytelling, and those special moments that bring us together."

"We look forward to the debate about the future and working with the Government to ensure sustainable, long-term public funding. As part of these discussions, we will run our biggest ever public engagement exercise in 2025 so that audiences are at the heart of shaping our future."