OBR FORECASTS BBC LICENCE FEE AT £202.60 BY 2031

The Office for Budget Responsibility forecasts that the annual BBC licence fee could rise from £180 to £202.60 by 2031 if it continues to increase with inflation. The fee rose to £180 in April. The BBC receives most of its funding from the licence fee, while the number of households paying it has declined in recent years. The OBR expects that number to fall by 2.7 million to 19 million by 2031.

Under current rules, households need a TV licence to watch live television on any channel or use BBC iPlayer. They do not normally need one to watch programmes on demand through other streaming services. More than 500,000 households stopped paying the fee last year. A public accounts committee report said around 3.6 million people say they do not have a licence and do not need one. The committee also reported that one in eight people avoid paying while using BBC services.

Proposals under consideration could extend the charge to streaming content that current rules do not cover, including programmes on Netflix, Amazon Prime Video and Disney+. An estimated three to four million additional households could have to pay if the rules change. The proposals are expected to appear in a white paper on the BBC’s charter renewal before Christmas. No decision has been made on whether to extend the charge.