BBC To See Increased Licence Fee From April

The BBC has won an inflation-busting increase to the licence fee, with secretary of state for culture, media and sport, Tessa Jowell, announcing a new cost of £131.50 from 1 April.

The new cost is an increase of 4.2% on the current price for a colour licence, representing an increase of £5 in real terms. A black and white licence will cost £44.00 under the new pricing.

Announcing the increase, Jowell delivered a written statement to both Houses of Parliament, explaining: “The television licence fee settlement announced by the Government in February 2000 provides for changes in the licence fee of RPI plus 1.5 per cent for each year from 2000-2001 to 2006-2007.

“This settlement is designed to enable the BBC to provide a strong and distinctive schedule of high quality programmes and remain at the forefront of broadcasting technology. The settlement includes a requirement for the Corporation to raise over £1 billion through efficiency savings and increased income over the period.”

The latest licence fee rise is unlikely to be the last, as November 2005 saw the Corporation lobbying for a further increase of RPI plus 2.3% a year from April 2007, taking the total cost per household to £150.50 by 2013 (see BBC Requests Increased Licence Fee For Digital Britain).

Amongst the Corporation’s long term plan for the increased licence fee funds is the preparation for digital switchover, scheduled for completion between 2008 – 2012; the availability of high definition TV to all, and a move to open its archives for viewing by the public.

BBC: 020 8743 8000 www.bbc.co.uk DCMS: 020 7211 6200 www.dcms.gov.uk