The Government has confirmed the cost of colour TV licence will rise in line with inflation in April 2025. Options to replace the licence fee will be reviewed as part of the BBC Charter Review.
- Government expanding Simple Payment Plan for households struggling to pay.
- BBC Funding Model Review axed; options for licence fee replacement to be incorporated into Charter Review.
- New licence fee from April 2025: £174.50.
Culture Secretary Lisa Nandy has confirmed the price of a TV licence will increase in line with the CPI measure of inflation.
This means the cost of an annual colour TV licence from April 2025 increases to £174.50, up £5 (+42p a month). This is less than the £10.50 increase in 2024-25, when inflation levels were higher. Prior to 2024, the fee had been frozen for two years. The licence fee will continue to be increased in line with inflation until April 2027.
New approach to reviewing future of licence fee
However, the new Government has axed the BBC Funding Model Review set up by the previous Government and announced back in March.
The expert panel recruited to support the review, including Martin Ivens (former editor of The Sunday Times) and Sir Peter Bazalgette (TV executive and producer) has been disbanded.
Instead, the Government will now review future BBC funding as part of the BBC Charter Review.
The Charter Review will determine what the BBC is required to do beyond 2027, when its current Royal Charter expires. The Charter Review will include a public consultation enabling audiences and stakeholders to give their views.
Support for struggling households
The Government confirmed earlier it is also expanding the Simple Payment Plan (SPP).
That will allow an estimated additional 9,000 unlicensed households experiencing financial difficulty to split up the annual payment into more manageable fortnightly and monthly instalments. The BBC’s analysis suggests that the expansion could double the number of households using the SPP to around 500,000 by the end of 2027.
The Culture Secretary says she will introduce secondary legislation to expand the eligibility criteria, so that TV Licensing can offer the SPP to unlicensed households if their agents assess a household is facing financial hardship. This will enable TV Licensing to offer the scheme to more vulnerable households.
By: Marc Thornham