On 7 December 2023, the UK Department for Culture, Media and Sport launched an internal review, to be supported by a panel of independent experts, to assess future funding options for the BBC. The review will look at how alternative models could help secure the broadcaster’s long-term sustainability amid an evolving media landscape, increased competition and changing audience behaviour, while reducing the burden on licence fee payers.

According to the terms of reference, the review will explore the sustainability of the BBC’s current licence fee model and build an evidence-based understanding of alternative models for funding (for example, providing more services on a commercial basis). Impacts on the BBC World Service and minority language broadcasting will also be considered.

The Government clarifies that the current licence fee funding model will continue for the remainder of the period of the BBC’s current Charter which ends on 31 December 2027.

The review will aim to report by the Autumn of 2024.

The Government also announced that BBC licence fee will rise in 2024 by less than previously expected. In 2022, the government froze the licence fee for two years. At that time, it was agreed that the current annual fee of £159 would remain unchanged until April 2024, before rising by inflation for the following four years. However, the government has now announced a change to “how the inflation-linked uplifts to the licence fee are calculated for 2024”. This means the annual cost of a TV licence will be £169.50 from April 2024.

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