BBC licence fee set to rise in 2024 to £169.50 a year

The BBC licence fee is set to rise in the new year.

Culture, Media and Sport secretary, Lucy Frazer has confirmed that the BBC licence fee will rise by £10.50 to £169.50 a year in 2024.

The household payment which is used to fund the broadcaster’s operations had previously been frozen at £159, but was expected to rise in the new year in line with inflation. 

The increase was set at 9 percent from April 2024, but the Government confirmed that the increase rate had been reduced. 

Speaking at the House of Commons, Frazer confirmed that the increase would instead be at 6.7 percent, reflecting September’s consumer price index (CPI) of inflation. 

Frazer also confirmed that the Government would launch a review of the BBC’s funding model

She said: “The review will look at how we can ensure the funding model is fair to the public, sustainable for the long term and supports the BBC’s vital role in growing our creative industries.”

BBC said: "We note that the Government has restored a link to inflation on the licence fee after two years of no increases during a time of high inflation.

"The BBC is focussed on providing great value, as well as programmes and services that audiences love. However, this outcome will still require further changes on top of the major savings that we are already delivering.

"Our content budgets are now impacted, which in turn will have a significant impact on the wider creative sector across the UK. We will confirm the consequences of this as we work through our budgets in the coming months."