Major change to TV licence fee on way and people won’t be happy
A MAJOR change is being made to the TV licence fee, which is unlikely to go down well with viewers.
The public faces a sharp rise in the cost of tuning in to their favourite shows as inflation lands another blow to their finances.
The Department of Culture, Media and Sport’s (DCMS) policy is for the licence fee to rise in line with the rate of inflation in 2024 following a two-year freeze.
According to a report in the Daily Telegraph, the Office for Budget Responsibility (OBR) is forecasting that the inflation figure used will be 8.2%.
This represents an increase of £13, with the charge shooting up from the current £159 to £172, the largest increase in two decades.
The OBR also predicted that this will take the revenue received by the BBC from the licence fee from £3.7billion in 2023 to £4billion in 2024, the first time this figure has been reached.
The price spike is set to be introduced in April next year amid pressure on ministers to scrap it.
Former Culture Secretary Nadine Dorries hit out at the move, saying: “I am in favour of freezing it until a full review of how the BBC is funded is completed and alternatives explored.”
Ms Dorries implemented the freeze during her time in the department.
It comes after the BBC was rocked by another impartiality row, with Match of the Day host Gary Lineker comparing proposed new legislation on immigration to “1930’s Germany”.
Mr Linker was briefly suspended by the broadcaster in a significant U-turn after it was first reported that he would face no disciplinary action.
This prompted fellow MOTD hosts Ian Wright and Alan Shearer to boycott the programme in “solidarity”.
However, Mr Linker was reinstated this week and will return to the show this weekend.
Questions of impartiality also arose over BBC chairman Richard Sharp’s role in securing ex-PM Boris Johnson a sizeable loan.
Mr Sharp is a well-known Tory donor and friend of Boris Johnson and was also current PM Rishi Sunak’s boss when they both worked at Goldman Sachs.
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.”
Meanwhile, a DCMS spokesperson 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.”