Government ministers are concerned about dramatically raising the cost of the TV Licence fee for households as they are worried it could impact their ability to financially survive coming out of the pandemic. However, the BBC is in the middle of a “funding squeeze” at the moment, which has resulted in a major restructuring of the public broadcaster’s programming and production. In total, around £3.2billion is generated every year for the BBC through the British public paying their licence fees.
As of this year, the licence fee has risen from £157.50 to £159 and the Government is currently in negotiations to determine how much it will continue to increase in the coming years.
However, according to The Times, certain Conservative Ministers are lobbying for the fee not to increase by the rate of inflation, as per the BBC’s wishes.
In reality, this would mean TV Licence fee costs would drop in real terms, while other household bills would continue to increase.
Speaking to the newspaper, a Government source said: “The BBC is a hugely important national institution.
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“But equally these are hard times. Nobody wants to punish the BBC but it’s got to be subject to the same efficiency savings as everyone else.”
Many Tory MPs are pushing for the BBC licence fee to be dramatically cut or reduced all together, citing the success of streaming services such as Netflix.
One Tory MP addressed the political nuances of the issue to The Times, saying “it doesn’t play well in the red wall,” the name given to the Northern constituencies won by the Conservative Party in 2019.
They added: “I don’t think they should be getting any extra when they pay Gary Lineker God knows how much.”
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Jonathan Gullis, MP for Stoke-on-Trent North, is one of the many Members of Parliament calling for the abolition of the TV Licence fee.
He said: “With the rise of satellite and online streaming, the imposition of a compulsory tax is now rightly questioned.”
However, other political figures and broadcasting experts, such as former BBC director-general Greg Dyke, are in favour of increasing the licence fee by at least in line with the rate of inflation.
“It’s hard to see why it shouldn’t increase with inflation given the competition it now faces,” he explained.
“The BBC has had a good run in terms of quality drama, for example, but that costs a lot of money.
“A lot of the money goes on the news. It needs to be properly funded.”
Who can claim a free TV licence
Earlier this year, the Government stopped its plans to explore decriminalising the public not paying for their TV Licence.
Currently, anyone aged 74 or over can be eligible for a free TV Licence, which is paid for by the BBC, provided they claim Pension Credit.
However, the DWP has estimated that one million households entitled to Pension Credit do not claim it.
Furthermore, care home residents and the clinically blind are also entitled to reduction in their licence payments.
TV Licence fees can be paid by either paying in one go or spreading the cost with a range of Direct Debit options.
Those unsure whether they need to pay their TV Licence fee should contact tvlicensing.co.uk for further information.
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