08/03/2007

TV license fee to rise

TV licences are set to increase to £135.50 for a colour television and £45.50 for a black and white licence.

The increase follows the latest BBC licence fee settlement announced in January.

The licence fee will increase annually by 3% for the first two years and 2% in the third, fourth and fifth year. There will be an increase in the sixth year (2012 - 13), of up to 2%, depending on a further review nearer the time.

Other regulations laid before Parliament today also contain a number of additional amendments to the licence fee system. These include:
  • Viewers who use a digital set-top box with a black and white TV will now only have to pay for a black and white licence (this will not apply to set-top boxes that are able to record television programmes)
  • Listeners who use a digital set -top box with a black and white TV will now only have to pay for a black and white licence (this will not apply to set top boxes that are able to record television programmes)
  • The cost of a television for residential and nursing homes and sheltered housing under the Accommodation for Residential Care (ARC) scheme will rise from £5 to £7.50 a year per unit of accommodation. This is the first rise since 1988 and will simply cover the cost of administering the concession
  • Retired people aged 60 or over and disabled people on short term respite care visits to nursing and residential homes will be able to benefit from the ARC concessionary scheme, previously available only to full-time residents
Commenting on the rise, Broadcasting Minister Shaun Woodward: "The licence fee enables the BBC to deliver the very best quality TV programmes. But it isn't just about entertainment. The BBC will support digital switchover and will widen its geographical reach as it begins a major move to the North West.

"We have delivered a fair settlement for the BBC and provided it with certainty that no other broadcaster has. It is now the job of the BBC Trust to ensure that licence fee payers get value for money."

(KMcA/SP)

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