New Prime Minister confirms Government is committed to the licence fee, despite record numbers refusing to pay.
PM Keir Starmer has thrown his support behind the current method of funding the BBC. Confirming his party’s manifesto commitment, the new Government’s stance looks set to end years of financial uncertainty for the broadcaster.
However, the PM cautioned that regarding the licence fee, saying there would be “some more thought between now and [2027], but we are committed.”
The current licence fee is currently being undermined by a growing number of households refusing to pay, either due to idealogical or financial reasons.
According to a research briefing for the House of Commons Libary, the estimated TV licence evasion rate rose from 5.50% in 2012/13 to 10.31% in 2022/23.
In the Republic of Ireland, where this has become a major problem for public broadcaster RTÉ, the Government is preparing to make a decision that could lead to the broadcaster receiving direct funding through taxation, instead of the licence fee.
In other countries, the licence fee has been replaced by alternative models including a household levy or even funding for public media from commercial channels and streamers.
Recent freezes in licence fee funding and a threat of long term changes in BBC funding has led to the BBC making controversial cuts to its public service broadcasting side of the business, while growing its commercial activities.
The current BBC Charter and its licence fee agreement ends in 2027, meaning decisions over the BBC’s future funding and general direction must be undertaken by the current Government.
The previous Conservative Government had repeatedly frozen the licence fee and threatened to end the current method of funding. In 2022, the licence fee was frozen for two years at £159.
By: Marc Thornham