Culture Secretary Nadine Dorries has confirmed that the BBC licence fee will be frozen at £159 for two years, starting from April 2022. Speaking in the House of Commons on Monday, she said the government could not justify adding extra pressure on household finances during a period of rising costs.
After the two-year freeze, the fee will increase in line with inflation for the following four years. The BBC's director general, Tim Davie, acknowledged that the freeze would mean "tougher choices which will impact licence fee payers." The corporation's income for UK services is already 30% lower in real terms than a decade ago.
The licence fee funds BBC services including TV, radio, the BBC website, podcasts, iPlayer and apps. Its existence is guaranteed until at least 31 December 2027 under the BBC's royal charter. The Department for Culture, Media and Sport said the BBC is expected to receive about £3.7bn in licence fee revenue in 2022 and £23bn over the settlement period.
Ms Dorries also announced that Welsh language broadcaster S4C will receive an extra £7.5m per year to develop its digital offering. She hinted at future discussions about the BBC's long-term funding model, stating that "the days of the elderly being threatened with prison sentences and bailiffs knocking on doors" were over.
The announcement has sparked debate, with critics accusing the government of ideological attacks on the BBC, while supporters argue the licence fee model is outdated in the age of streaming services. The BBC Board held an unusual Sunday meeting in response to the news, and further cuts to services are expected.
