TV licence prices are set to rise again in just a few weeks, taking the cost to £174.50 per year. The BBC will be increasing the fee annually until 2027 in accordance with the present royal charter. It can impose a significant strain amid an increase in the energy cap and the cost of living crisis.
Under new proposals, households that only use streaming services like Netflix might also be required to pay the TV licence fee. This comes as ministers are drafting plans to restructure the corporation’s funding after the BBC's existing royal charter expires in 2027.
The royal charter is an agreement between the Government and the BBC on its role and governance. But what exactly is changing with the TV licence? Here’s a breakdown. The BBC TV licence fee is set to increase by £5 to £174.50 per year on April 1. The increase is based on the annual inflation rate.
Other options include allowing the BBC to use advertising, creating a specific tax for streaming services or making BBC Radio listeners pay. These possible changes are being considered as viewing habits have changed as users gravitate toward on-demand services.
The talks follow Culture Minister Sir Chris Bryant's statement that he wanted the BBC licence fee to continue to support a “massive production budget” for UK-produced TV shows and films. “I do want the streamers to come here. Tom Cruise has made massive investments in the UK,” he said.
“But I also want us to have a system where a British production company is commissioned by others to make something that where the Intellectual Property (IP), or some of the IP, remains with the production company. I kind of want a bit of both.”. According to Jay Hunt, chairperson of the British Film Institute (BFI), British public service broadcasters (PSBs) can effectively cohabit with streaming behemoths like Netflix and Apple TV Plus.
She said: “There is an emerging thesis that the only television that speaks to British audiences is made by public service broadcasters. “I’ve spent most of my career in public service television and extraordinary programming is coming out of the BBC, Channel 4, Channel 5, the whole time, but it is also now coming out of inward investment.”.
Hunt added that shows like Slow Horses, Rivals and Baby Reindeer are a few examples that “there is great British content being made beyond the PSBs as well”. There were also rumours circulating that the licence fee would be covered by general taxation.
Money raised from the licence fee pays for BBC shows and services - including TV, the BBC website, podcasts, iPlayer, apps, as well as radio. Your household has to pay the fee if you’re watching live television on a television, computer, tablet, games console, smartphone or any other device. This includes watching live Premier League matches on Amazon Prime.
State pensioners who are aged 75 and older and qualify for pension credit are eligible for a free TV licence. Individuals who are retired, over 60, disabled, or reside in care facilities or protected housing can obtain their licence for a discounted price of £7.50.
