The TV license fee will rise from £5 to £174.50 in 2025.

The government has announced that the cost of a TV license will rise from £5 to £174.50 in 2025.

The Department for Culture, Media and Sport (DCMS) announced on Friday that thousands more households will be offered support to pay license fees.

The fee pays for the BBC’s shows and services, and the government also said ministers would review the BBC’s charter to assess the corporation’s future funding.

Culture Secretary Lisa Nundy said there would be “an honest national conversation about the long-term future of the broadcaster”.

The £5 increase will come into effect in April, and is significantly less than the £10.50 increase that was implemented earlier this year.

The government said it would expand the Simple Payment Plan (SPP) scheme to cover an additional 9,000 households facing financial difficulties, with annual payments split into more manageable fifteen and monthly installments.

The price of the TV license is due to increase in line with inflation every year until 2027 after the agreement was signed in 2022.

The government has reverted to calculating inflation using annual inflation instead of monthly inflation. which was used last year.

Meanwhile, DCMS said it was ending a review of the BBC’s funding model set up by the previous government, and disbanding its expert panel.

Instead, the government will review the BBC’s funding as part of a charter review process before the BBC’s current royal charter expires in 2027.

The charter sets out the terms and objectives of the BBC’s existence and usually lasts for about a decade.

A statement said the review would “incorporate independent expert advice, stakeholder views and public consultation to decide how best to support the BBC’s long-term future”. is.”

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 look forward to it for decades to come. I want to see it flourish.

“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 to support its vital work. But it is also fair and accountable to those who pay for it.

“In the short term, we are providing funding certainty to the BBC, while helping thousands of households facing financial difficulties to spread the cost of TV licences.”

Foreign Secretary David Lemmy has also announced an extra £32.6m for the BBC World Service in 2025-26.

Media watchdog Ofcom also published it. BBC Annual Report said on Friday that the corporation was struggling to reach some audiences in Britain.

He identified younger audiences and those from lower socio-economic backgrounds as areas of concern.

Although it faces competition from a growing number of digital outlets, Ofcom said the broadcaster is still the most used media brand in the UK across TV, radio and online.

It added that audience trust has remained strong ever since – 61% of UK adults like the BBC.

The report says there are segments of the audience that are generally less engaged with BBC content.

It says 78% of 16-34 year olds and 79% of people from low socio-economic backgrounds use at least one BBC service every week. This figure compares to 86% of UK adults.

Another area of ​​concern was the amount of time young people were spending daily with the BBC.

This has seen a steady decline, from 75 minutes per day in 2017 to 46 minutes in 2023 – a large drop-off compared to the general adult population.

The report said the lack of engagement among younger audiences and those from lower socio-economic backgrounds was “a long-standing problem for the BBC”. has been”.

He also asked that the BBC be more transparent about the impact of its efforts to attract these audiences.

There are also areas where Ofcom has identified that the BBC is performing well, including high-quality news and current affairs content that audiences trust.

The report highlighted recent national elections and the rise in international conflicts around the world as times when audiences need to turn to credible news sources.

Additional reporting by Annabelle Rackham.