The cost of a TV licence is set to increase by £5 next April, rising from £169.50 to £174.50. The UK Government has announced the 2.96 per cent hike in the licence fee, which is the BBC’s primary source of funding, with the intention of placing it on a “stable financial footing”.
Additionally, the price for a black and white TV licence will see a £1.50 rise, moving from £57 annually to £58.50. Culture Secretary Lisa Nandy confirmed the updated pricing today, while also stating that the licence fee funding model will remain in place until 2027.
However, she has expressed her openness to exploring all funding options. In her statement, Ms Nandy said: “The BBC provides much-needed programming for households across the country, including children’s education, world-class entertainment and trusted news for all people in all parts of the UK. I want to see it thrive for decades to come.”
“Through the Charter Review, we will have an honest national conversation about the broadcaster’s long-term future, ensuring the BBC has a sustainable public funding model that supports its vital work but is also fair and responsive to those who pay for it. In the short term, we are providing the BBC with funding certainty, while supporting thousands more households facing financial hardship to spread the cost of a TV licence.”
The Government is set to widen the scope of the Simple Payment Plan (SPP), offering a financial lifeline for those struggling with TV Licence fees. From April next year, households can be considered for the SPP based on financial hardship as determined by TV Licensing agents, reports the Mirror.
This move could see up to 9,000 unlicensed households per month benefitting from the scheme. The BBC’s analysis indicates that this expansion might double the current users of the SPP to an estimated 500,000 by the end of 2027.
Previously, the TV Licence fee was frozen at its current rate for two years in 2022 and 2023 by the former Tory government, a decision which was touted as providing “broadcaster certainty while protecting the public from price hike”. However, this April saw the end of the freeze, resulting in viewers having to fork out an additional £10.50 annually.
A TV licence is mandatory under UK law if you watch or record live TV across any channel, including Channel 4, ITV, and Channel 5, regardless of the device used. It’s also required for anyone using BBC iPlayer, even for catch-up shows.
It is also required if you’re watching live shows on streaming services, including Amazon Prime, ITVX, All 4, Sky, Virgin Media, BT, and My5. However, if you’re only watching on-demand content on these platforms, a TV licence isn’t necessary.
This also applies to Netflix, Amazon Prime, ITVX, Disney Plus, Now, and YouTube. It’s crucial to note that the TV licence covers live TV and the BBC – so if you’re exclusively watching on-demand shows on ITVX or All 4, you won’t need one. But if you’re tuning into a live football match on Sky or Amazon Prime, then a TV licence is mandatory.
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