TV licence payment to rise by £5 to £174.50 in 2025

The price of a TV licence is to rise by £5 to £174.50 in 2025, the federal government has introduced.

1000’s extra households are additionally to be supplied help to pay the licence payment, the Division for Tradition, Media and Sport (DCMS) introduced on Friday.

The payment pays for BBC exhibits and providers, and the federal government additionally mentioned ministers will evaluation the BBC’s constitution to look at the company’s future funding.

Tradition Secretary Lisa Nandy mentioned there can be “an sincere nationwide dialog in regards to the broadcaster’s long-term future”.

The £5 enhance will come into pressure in April, and is considerably lower than the £10.50 rise that was utilized earlier this 12 months.

The federal government mentioned it could increase the Easy Fee Plan (SPP) scheme so 9,000 additional households dealing with monetary issue can break up the annual fee into extra manageable fortnightly and month-to-month instalments.

The price of a TV licence is because of enhance in step with inflation every year till 2027, following an settlement made in 2022.

The federal government has returned to calculating the rise through the use of an annual inflation price somewhat than a month-to-month one, which was used final 12 months.

In the meantime, the DCMS mentioned it was is scrapping a evaluation of the BBC’s funding mannequin that was arrange by the earlier authorities, and is disbanding its skilled panel.

As a substitute, the federal government will look at the problem of BBC funding as a part of the constitution evaluation course of, earlier than the BBC’s present royal constitution expires in 2027.

The constitution units out the phrases and functions of the BBC’s existence and usually lasts for a few decade.

The evaluation “will incorporate unbiased skilled recommendation, stakeholder views and public session to resolve on how greatest to help the BBC’s long-term future”, a press release mentioned.

Nandy mentioned: “The BBC supplies much-needed programming for households throughout the nation, together with youngsters’s training, world-class leisure and trusted information for all individuals in all components of the UK. I wish to see it thrive for many years to return.

“By means of the Constitution Evaluation, we can have an sincere nationwide dialog in regards to the broadcaster’s long-term future, making certain the BBC has a sustainable public funding mannequin that helps its important work however can also be truthful and aware of those that pay for it.

“Within the brief time period, we’re offering the BBC with funding certainty, whereas supporting hundreds extra households dealing with monetary hardship to unfold the price of a TV licence.”

Overseas Secretary David Lammy has additionally introduced an additional £32.6m for the BBC World Service in 2025-26.

Media watchdog Ofcom additionally printed its annual report on the BBC on Friday, saying the company is struggling to achieve some audiences within the UK.

It recognized youthful audiences and people from decrease socio-economic backgrounds as areas for concern.

Though it faces competitors from a rising variety of digital shops, Ofcom mentioned the broadcaster continues to be the most- used media model within the UK throughout TV, radio and on-line.

It added that viewers belief stays constant since then – with 61% of UK adults viewing the BBC favourably.

The report mentioned there are particular sections of the viewers who’re much less engaged with BBC content material normally.

It acknowledged that 78% of 16-34 year-olds and 79% of these from decrease socio-economic backgrounds use no less than one BBC service every week. These figures in contrast with 86% of general UK adults.

One other space of concern was how a lot time per day younger individuals are spending with the BBC.

It has seen a gradual decline, from 75 minutes per day in 2017 to 46 minutes in 2023 – which is an even bigger drop-off in contrast with the overall grownup inhabitants.

The report acknowledged that the shortage of engagement from youthful audiences and people from decrease socio-economic backgrounds “has been a longstanding concern for the BBC”.

It additionally requested that the BBC is extra clear about what affect its initiatives to draw these audiences are having.

There are additionally areas the place Ofcom has recognized that the BBC is doing effectively, together with delivering high-quality information and present affairs content material that’s trusted by the viewers.

The report highlighted latest nationwide elections around the globe and escalating worldwide conflicts as being occasions the place audiences have wanted trusted information sources to show to.

Further reporting by Annabel Rackham.