The annual cost of a TV licence looks set to rise considerably, adding yet another expense for households feeling the pressure of the cost of the living crisis continues to mount.
The Telegraph reports that next year the fee will be increased in line with inflation by 8.2%. This means that those wishing to watch BBC television and listen to BBC radio will have to pay an additional £13.
The licence fee has been frozen for two years, but the planned rise will come into effect in April 2024. The Office of Budget Responsibility (OBR) forecasts that the licence fee will rise from £159 a year to £172, making it the biggest increase in more than 20 years.
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The hike brings a fresh focus on questions about the corporation's value for money and impartiality. The broadcaster has faced a wave of criticism recently over its handling of Match of the Day host Gary Lineker's suspension following tweets in which he compared proposed new legislation on immigration to "1930s Germany".
The furore came hot on the heels of Richard Sharp allegedly helping to facilitate a loan for the then-prime minister while Mr Sharp was applying to be BBC chairman. This week the broadcaster faced fresh controversy as staff across the country walked out over proposed cuts to local radio programming.
Addressing the license fee hike a BBC spokesperson said: “The Government 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.
“It is not for the BBC to speculate on what inflation might be and how that might impact the licence fee in future years.
“Ultimately, it is for Government to set and confirm the cost of a licence each year. The BBC will continue to focus on what it does best: working to deliver world-class content and value for all its audiences.”
A Culture Department spokesman said: “We agreed a fair settlement with the BBC that will see the licence fee remain at £159 until 2024 to protect licence fee payers from current inflationary pressures and then rise in line with inflation until the end of 2027. The exact level of inflation is yet to be confirmed.
“The BBC's funding model faces major challenges due to changes in the way people consume media, which is why we are working with it to look at ways to ensure it is sustainable in the long term.”
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