BBC Licence Fee Expected to Exceed £180 Amid Inflation Impact

The BBC TV licence fee is expected to rise above £180 next year, marking the sharpest increase in years and a new financial strain for millions of households already coping with high living costs. The rise, likely to be confirmed later this month, will be based on September's 3.8% inflation rate, increasing the fee from £174.50 to just over £181. This increase surpasses the £175 mark two years earlier than initially forecast under a 2022 funding deal that ties licence fee rises to inflation until at least 2028. While the BBC generated nearly £4 billion from the levy last year, the number of licences sold has declined slightly, reflecting a shift towards streaming services like Netflix and Prime Video. Culture Secretary Lisa Nandy has committed to honoring the current agreement but is exploring a new mixed-funding model for the BBC, potentially incorporating limited subscriptions and advertising. The rising fee and the broadcaster's future funding model continue to fuel debate amid scrutiny over the BBC's relevance and spending practices.