The UK government has announced that the TV licence fee will increase by £10.50 to £169.50 in 2024. This rise, based on the September 2023 inflation figure, represents a 6.6% increase. Currently, the licence fee stands at £159 for color TVs (or £53.50 for black and white sets). The licence fee funds various BBC services, including TV, radio, the BBC website, podcasts, iPlayer, and apps.
In 2013, BBC funding was £3.70bn, which has increased to £3.74bn in 2023. However, if the licence fee had risen with annual inflation over the past decade, it would be higher. The BBC also receives income from commercial activities, grants, royalties, and rental income.
The BBC is committed to providing impartial, high-quality, and distinctive content, as outlined in its charter. The licence fee exists until 2027, and the government has launched a review to determine the future funding model beyond that. Culture Secretary Lucy Frazer stated that the review aims to ensure fairness, long-term sustainability, and support for the BBC’s role in growing the creative industries.
It is worth noting that the TV licence fee has faced criticism for being a flat-rate payment, with the poorest households paying the same as the richest. Introduced in 1946 when the BBC was the sole UK broadcaster, the fee now competes with advertising-funded TV channels, online content platforms like YouTube, and subscription services such as Netflix and Now TV.
Alternative funding options suggested include a broadband connection tax, government grants funded by general taxation, part-funding through advertising, or a subscription model. By law, each UK household must pay the licence fee if they watch or record live TV, watch live TV on online services, or download/watch BBC programs on iPlayer.
In 2020, free licences for those aged over 75 were changed, resulting in a reduced number of eligible households. Failure to pay the licence fee can lead to court proceedings, and in 2022 there were over 250,000 prosecutions for TV licence evasion with fines averaging £202.
The government’s decision to increase the fee to £169.50 in 2024 came as a surprise, as it was lower than expected. However, it still means the BBC will face additional financial pressures, impacting content budgets and the wider creative sector across the UK.
