The UK government confirmed the television license fee – a tax on owning a TV and consuming content created by the British Broadcasting Corporation (BBC) – will increase by £10.50, from £159 to £169.50, indicating a 6.6 percent rise.
This adjustment is less than the outlined £15 – around 9 percent rise based on the yearly inflation average the BBC and Office for Budget Responsibility (OBR) anticipated.
Culture Secretary Lucy Frazer disclosed this week that there will be a review of the BBC’s funding model, likely due to the increase of the license fee. The elevated fee is set to come into effect this coming April, after the £159 fee stayed stagnant for about two years. The BBC Board acknowledged the government’s move to tie the license fee to inflation after two years of no increase during a period of high inflation.
The government’s decision to raise the license fee by a smaller margin is alleged to lead to “no material difference” to those struggling with the cost-of-living crisis, according to the Shadow Culture Secretary Thangam Debbonaire. The government also recently announced Samir Shah as its preferred candidate to assume the role of BBC Chairman following Richard Sharp’s earlier departure this year.