Culture Secretary, Lisa Nandy is seeking “an honest national conversation” about the BBC’s future.
She made the comments as she announced an increase in the BBC Licence Fee from April and that it would be retuning to a method, whereby it rises in line with annual CPI inflation – rather than a monthly one which was used last year.
Next year’s rise of £5 to £174.50 is lower than the £10.50 increase applied earlier this year.
In a written statement to Parliament, Nandy set out how the media landscape has changed significantly in recent years and the need for the BBC to evolve with it.
She stated that the broadcaster “now faces increased global competition from streaming giants, changing viewing habits and a decline in licence fee income of more than 30 per cent.”
“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 want to see it thrive for decades to come,” she said.
“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 that supports its vital work but is also fair and responsive to those who pay for it.
“In the short term, we are providing the BBC with funding certainty, while supporting thousands more households facing financial hardship to spread the cost of a TV licence.”
A public consultation will enable audiences and stakeholders to give their views.
The government is also expanding the Simple Payment Plan (SPP), to allow an estimated additional 9,000 unlicensed households experiencing financial difficulty per month, to split up the annual payment into fortnightly and monthly instalments. The BBC’s own analysis suggests that the expansion could double the number of households using the SPP to around 500k by the end of 2027.
In addition to the Licence Fee announcement, the the Foreign Secretary also confirmed that an extra £32.6m would be invested in the BBC World Service in 2025-26.
The current BBC Charter began on 1 January 2017 and ends on 31 December 2027.
