The BBC licence fee will be frozen for two years, the culture secretary has confirmed.
Nadine Dorries told the House of Commons that the fee will be fixed at £159 until April 2024, before rising with inflation for the following four years.
The broadcasting company has criticised the government’s decision, arguing it will lead to “tougher choices” that will impact on viewers.
READ MORE:
Ms Dorries said the BBC had asked for the fee to rise to over £180 by the end of the current settlement, adding that the freeze was necessary to help households through the cost of living crisis.
“The global cost of living is rising and this government is committed to supporting families as much as possible during these difficult times," she told MPs.
“Given that climate, we had to think very carefully about imposing a potential increase on the TV licence, particularly given that any increase would expose families to the potential threat of bailiffs knocking on their door or criminal prosecution.
“When it comes to monthly bills, this is one of the few direct levers that we have in our control as a government.
“We simply could not justify putting extra pressure on the wallets of hard-working households.
“Every organisation around the world is facing the challenge of inflation. I simply do not believe that those responsible for setting household bills should instinctively reach into the pockets of families across the country for just a little more every year to cover their costs."
Labour accused the Cabinet minister of trying to distract from Boris Johnson’s woes while waging a “vendetta” against the BBC.
Shadow culture secretary Lucy Powell said the government’s move makes it look like a “tin-pot dictatorship”.
Responding to the statement, she said: “Is the licence fee really at the heart of the cost-of-living crisis?
“Or is this really about their long-standing vendetta against the BBC?”
BBC chairman Richard Sharp and director-general Tim Davie have described the decision as “disappointing”.
They said in a statement: “Given the breadth of services we provide, the licence fee represents excellent value for money. There are very good reasons for investing in what the BBC can do for the British public and the UK around the world.
“A freeze in the first two years of this settlement means the BBC will now have to absorb inflation. That is disappointing – not just for licence fee payers, but also for the cultural industries who rely on the BBC for the important work they do across the UK.
“The BBC’s income for UK services is already 30% lower in real terms than it was 10 years ago. We will set out the implications of the settlement later, before the end of the financial year, but it will necessitate tougher choices which will impact licence fee payers.
“While there will be challenges, we do have the financial stability of the licence fee, which is crucial. We have the certainty of a six-year deal for the funding of the BBC: two years cash flat and four years keeping pace with inflation.
“We have great faith in the BBC and its future. We will do everything to ensure the BBC continues to punch above its weight for Britain and for audiences around the world. We will continue to drive an ambitious programme of reform moving more of our output across the UK, transitioning the organisation to a digital future and delivering distinctive and impartial content. We have a uniquely talented team of people at the BBC who are focused on delivering this for the public.
“We actively look forward to the national debate on the next charter and, of course, all options should be considered. The BBC is owned by the public and their voice must always be the loudest when it comes to determining the BBC’s future.”
Get all the latest from the Manchester Evening News by signing up to our newsletters here.
