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A review of the BBC’s funding model is to be carried out by the government.
Speaking in the Commons on Monday, Culture Secretary Nadine Dorries said it is time to ask the question whether “a mandatory licence fee is appropriate” and confirmed a government review into the matter will start “shortly”.
In a tweet the day before, Ms Dorries added: “This licence fee announcement will be the last.”
She told MPs that the licence fee will remain fixed at £159 until April 2024 when it will then rise in line with inflation for the following four years, up to the end of the current Royal Charter on 31 December 2027.
BBC bosses have pledged to “continue to make a strong case to the government for investing” in the corporation.
What is the licence fee and how does it work?
The annual BBC licence fee – which currently costs £159 – is required by any household consuming BBC television channels, radio and online programmes and services including iPlayer, Radio 1, CBeebies and the World Service.
This applies to all forms of transmission including using the iPlayer on smart television, laptops and tablets.
It also funds Welsh language TV channel S4C and local TV channels and in total is reported to be worth around £3.2bn to the BBC.
The licence fee was introduced in 1946 when broadcasting recommenced after the Second World War.
The BBC licence fee payment, which is set by the government, usually rises in April each year.
In 2016, the government said the cost would rise in line with inflation for five years from April 2017.
But speaking in the Commons on Monday, Ms Dorries confirmed the BBC licence fee will be frozen at £159 for the next two years before rising with inflation for the four years after…
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Source : skynews

