The TV licence fee will rise by 6.7 per cent, in line with the annual rate of CPI inflation in September 2023, next year the Government confirmed today.
It means the annual cost of a TV licence will be £169.50 from April 2024 – the equivalent of an additional 88p per month.
The TV Licence fee has been frozen at £159 for two years, but this will come to an end as planned in April.
The Government has changed the methodology for the increase, having previously used the averaged annualised October to September CPI figure, which would have meant a rise by nine per cent.
The annual licence fee will be more than £20 cheaper than it would have been under the previous methodology, the government said.
Culture Secretary Lucy Frazer has today launched a review into how the BBC should be funded in the future.
The review will be supported by a panel of independent experts soon to be announced from across the broadcasting sector and wider business world and will assess a range of options for funding the BBC.
Culture Secretary Lucy Frazer said: “This is a fair deal that provides value for money for the licence fee payer while also ensuring that the BBC can continue to produce world-leading content.
“We know family budgets are stretched, which is why we have stepped in again – following two years of licence fee freezes – to reduce this year’s increase to less than a £1 a month.
“But this settlement has highlighted other challenges faced by the BBC with the changing media landscape making the battle for audiences more competitive and the number of people paying the licence fee decreasing.
This raises fundamental questions as to sustainability of the current licence fee system.
“So we are also launching a funding review of the BBC that will take a forensic look at the licence fee, and whether a reformed funding model could better support our national broadcaster to remain sustainable and affordable for audiences while driving growth in our creative industries.
“I want a thriving BBC, supported to inform, educate and entertain and this funding review will help us make sure we can deliver this for decades to come.”
The black and white TV licence fee will increase from £53.50 to £57.
