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22nd January 2024

Government announces an increase in BBC licence fees from April 2024

The government has announced a rise in BBC licence fees from next year. But what are the reasons behind this decision?
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Government announces an increase in BBC licence fees from April 2024
Credit: Nicolas J Leclercq @ Unsplash

The government has announced an increase in BBC licence fees from April 2024, from £159 to £169- a rise of 6.6%.

With the license fee frozen for the last two years, a rise in the cost was expected.

Because of inflation, the BBC had anticipated an increase nearer to £15, approximately 9%, drawing on the average inflation rate observed in the last 12 months. However, this was avoided.

The decline of 500,000 license fee payers nationally is partially attributed to competition from services like Netflix, and the decline is what has prompted the corporation to increase the BBC licence fee.

Services such as Netflix and Disney+ have seen a rise in popularity in recent years, particularly among young people and students.

According to a report by the media regulator Ofcom, a significant shift has been observed among younger viewers, with approximately 90% of individuals aged 18 to 24 choosing to go directly to their preferred streaming service rather than watching traditional TV channels.

Lucy Frazer, the Culture Secretary, noted that the BBC has experienced the effects of declining TV license subscriptions, with a decrease of 400,000 licenses taken out last year and a reduction of 1.7 million compared to the numbers in 2017-18.

Rising inflation and the decreasing number of TV license-fee payers are both reasons the BBC has blamed for the increase in the license fee.

Grace Hilton

Grace Hilton

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