The BBC licence fee will rise by £10.50 to £169.50 a year, the culture secretary has confirmed.
The household payment, which funds much of the corporation’s operations, had been frozen at £159 and was set to rise in line with inflation next year.
However, the expected 9 per cent increase – which would have meant an increase of around £15 from April 2024 – has been reduced, the government said.
Speaking in the Commons on Thursday, the culture secretary Lucy Frazer said the increase will instead be based on September’s consumer prices index (CPI) rate of inflation, which was 6.7 per cent. This will mean an increase of £10.50 to £169.50 per year.
Ms Frazer told the Commons: “Under the terms of the settlement, the licence fee must now increase annually in line with CPI (consumer prices index rate of inflation), with the first increase due in April 2024.
Lucy Frazer stressed that the licence fee rise was being ‘kept as low as possible’— (Alamy/Getty)
“The government is committed to supporting families as much as possible during these difficult times.
“We recognise bill rises are never welcome and family budgets remain under pressure.
“Today I am announcing that we will use the annual rate of CPI in September to calculate the increase of the BBC licence fee in April 2024.”
She stressed that the licence fee rise was being “kept as low as possible”.
Ms Frazer added: “In April the licence fee will rise by 6.7 per cent to £169.50 annually.
“This will minimise the rise for households, keeping it to £10.50 over the year, or 88p a month, rather than the rise of £14.50 which would have happened under the previous CPI measure.”
Social media users are divided over the issue.
One woman shared on X: “Great value for money. The BBC does more for people through their lifetime than many appreciate. “
Whereas others do not share the same optimism amid rising living costs, James Richards from Newport, South Wales, said: “Cheers for that. I know it’s less than £1 a month rise, but that could mean the difference between eating and heating for some people.”
