The BBC TV licence fee “could be scrapped by the end of 2027” in a significant relief for millions of Brits bracing for its price increase next year. Culture Secretary Lisa Nandy is considering plans to fund the network through general taxation instead.
This could mean the annual fee of £174.50, set to rise by £5 this April, could be abolished in December 2027. If Nandy proceeds with these plans, the BBC could transform into a mutual organisation – a business owned and operated by its members.
Programmes would be funded by taxes collected by the Government. Nandy confirmed in a November statement that a review of the corporation’s governing charter is expected to commence this year.
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She added that the government would maintain the licence fee until the end of the Charter period, ensuring the BBC has a “stable financial footing”. As agreed in 2022, the licence cost will continue to rise in line with inflation each year until 2027, reports The Sun.
The Culture Secretary stated the review aims to ensure the broadcaster adapts to the “next generational shift” and is prepared for success “long into the future”. However, she assured the public that the simple payment plan – a scheme assisting those struggling financially to pay for their licence – would be extended.
New legislation is anticipated that could double the number of vulnerable households benefiting from the support to 500,000 by 2027. The Government benefit is available to pensioners and tops up your income to a mi.
According to the latest statistics from the Department for Work and Pensions (DWP), over 968,000 people aged 75 and above currently claim pension credit. However, hundreds of thousands who could be eligible are not claiming it, missing out on an average of £3,500 extra per year.
The government also estimates that a further 760,000 people over 66 aren’t claiming pension credit even though they’re eligible. This benefit not only tops up your income but also comes with added perks, including a free TV licence for those aged over 75.
Anyone claiming the benefit can apply for the TV licence discount via the TV licencing website or by calling 0300 790 6117. The annual charge has faced years of scrutiny under the Conservative government, being frozen for two years at £159 before it was increased earlier this year.
A BBC spokesperson in November said: “We welcome confirmation that the licence fee will increase in line with inflation next year. We want everyone to get value from the licence fee and we are committed to delivering trusted news, the best homegrown storytelling and those special moments that bring us together. We also look forward to the debate about the future and working with the Government to ensure sustainable, long-term public funding.”