THE CULTURE Secretary has confirmed widespread reports that the UK Government is to freeze the TV licence fee for two years.
Nadine Dorries made the announcement in the Commons this afternoon.
The plan, which was trailled in some newspapers over the weekend and is said to be part of a blitz to win back disgruntled MPs and voters, will see the fee remain £159 per year until 2024.
The government is also considering ways to restructure the fee, and potentially get rid of it altogether, when the current funding contract ends in 2027.
Ms Dorries said she was making the announcement due to the rising cost of living expected to hit people from April, and to stop pensioners being threatened with bailiffs for not paying the levy.
However Labour's Dr Rupa Huq challenged this claim, saying that not one person over the age of 75 has been prosecuted since they had to start paying the licence fee last year.
Announcing the changes to MPs, Ms Dorries said: "The global cost of living is rising and this Government is committed to supporting families as much as possible during these difficult times.
“Given that climate, we had to think very carefully about imposing a potential increase on the TV licence, particularly given that any increase would expose families to the potential threat of bailiffs knocking on their door or criminal prosecution."
She added that the plans would have a direct effect on people's monthly bills, and continued: "We simply could not justify putting extra pressure on the wallets of hard-working households.
“Every organisation around the world is facing the challenge of inflation. I simply do not believe that those responsible for setting household bills should instinctively reach into the pockets of families across the country for just a little more every year to cover their costs.
“So today I am announcing that the licence fee will be frozen for the next two years and that it will rise in line with inflation for the following four years."
BBC chairman Richard Sharp and director-general Tim Davie have described the decision to keep the licence fee at the current rate of £159 until April 2024 as “disappointing”.
They said in a statement: “Given the breadth of services we provide, the licence fee represents excellent value for money. There are very good reasons for investing in what the BBC can do for the British public and the UK around the world.
“A freeze in the first two years of this settlement means the BBC will now have to absorb inflation. That is disappointing – not just for licence fee payers, but also for the cultural industries who rely on the BBC for the important work they do across the UK.
“The BBC’s income for UK services is already 30% lower in real terms than it was 10 years ago. We will set out the implications of the settlement later, before the end of the financial year, but it will necessitate tougher choices which will impact licence fee payers.
“While there will be challenges, we do have the financial stability of the licence fee, which is crucial. We have the certainty of a six-year deal for the funding of the BBC: two years cash flat and four years keeping pace with inflation.
“We have great faith in the BBC and its future. We will do everything to ensure the BBC continues to punch above its weight for Britain and for audiences around the world. We will continue to drive an ambitious programme of reform moving more of our output across the UK, transitioning the organisation to a digital future and delivering distinctive and impartial content. We have a uniquely talented team of people at the BBC who are focused on delivering this for the public.
“We actively look forward to the national debate on the next charter and, of course, all options should be considered. The BBC is owned by the public and their voice must always be the loudest when it comes to determining the BBC’s future.”
The SNP's John Nicolson said the UK Government wanted broadcasters to become as "sycophantic as most of the print press" and was afraid of high-profile television journalists holding the Prime Minister to account.
He said: "Ms Dorries doesn’t want to see Krishnan Guru-Murthy, lead presenter at Channel 4 News, or Nick Robinson, a former Chair of the Young Conservatives no less, and now lead presenter on Radio 4’s Today pin Johnson or his slippery apologists down.
"The Tory right wants the broadcast media to be as sycophantic as most of the print press, offering fawning adulation to their malevolent leader.
"If the BBC is felled, and Channel 4 privatised, free speech will be the victim."
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