Labour have given the green light to the BBC charging higher licence fees just as millions of households face higher energy bills and having their winter fuel allowances cut.
Lisa Nandy trumpeted the dire news for penny-watchers today (Friday, November 29) declaring that “the BBC provides much-needed programming for households across the country”.
It means the price of a TV licence will rise by £5, from £169.50 to £174.50, from next April.
The MP for Wigan added: “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.”
Millions are already facing higher bills this winter with Ofgem announcing a price cap rise and winter fuel payments being slashed by Labour to fill a claimed “£22 billion black hole” in the nation’s finances.
The Government said the 2.96% increase of the licence fee – which is the main funding for the BBC – aims to provide it with a “stable financial footing”.
The Mirror reports, the Government is also going to expand the Simple Payment Plan (SPP). Customers who qualify are able to choose from either a fortnightly or monthly payment plan that spreads the cost of a licence over 12 months.
Currently, unlicensed households are only eligible for the SPP if they meet certain criteria, which include having been visited by TV Licensing or after having sought advice from a debt advice charity.
From April next year, SSP can be offered to households if TV Licensing agents rule that the household is facing financial hardship. Labour says the expansion will benefit up to 9,000 unlicensed households per month.
BBC’s analysis suggests that the expansion could potentially double the number of households using the SPP to around 500,000 by the end of 2027.
The TV Licence fee had been frozen for two years in 2022 and in 2023 under the former Tory government. At the time, the government hailed the announcement as giving “broadcaster certainty while protecting the public from price hike”.
However in April this year, the licence fee freeze was scrapped, and TV fans were forced to pay an extra £10.50 a year for the licence.