The BBC licence fee will increase in line with inflation each year until 2027, the government has announced.
It will mean bills will rise by £5, or an extra 42p a month, from April next year – bringing the total cost of a TV licence to £174.50.
The hike comes after a £10.50 rise brought the charge to £169.50 in April this year.
The annual fee faced years of scrutiny under the previous government, and was frozen at £159 for two years before it was increased at a lower rate than the corporation expected.
In a statement to Parliament on Friday, Culture Secretary Lisa Nandy said she wanted to see the BBC “thrive for decades to come”.
She said through a review of the corporation’s Royal Charter, there would be an “honest national conversation about the broadcaster’s long-term future, ensuring the BBC has a sustainable public funding model that supports its vital work but is also fair and responsive to those who pay for it”.
Image: Lisa Nandy told Parliament she wanted to see the BBC ‘thrive for decades’. Pic: PA
“In the short-term, we are providing the BBC with funding certainty while supporting thousands more households facing financial hardship to spread the cost of a TV licence,” Ms Nandy said.
The household payment, which funds much of the BBC’s operations, will be increased each year in line with the annual consumer price index (CPI) inflation rate.
To help households struggling with financial pressures, the government said it would expand the Simple Payment Plan (SPP), which allows those eligible to spread the cost of a licence into more manageable fortnightly and monthly instalments.
The expansion will allow an estimated additional 9,000 unlicensed households experiencing financial difficulty to pay through the SSP, the government said.
An estimated 500,000 homes could be using the SSP by the end of 2027, according to BBC analysis.
The BBC has been under increasing financial pressure and last month revealed a raft of planned changes, including the axing of in-depth interview show Hardtalk, as it looked at reducing more than 100 news roles.
Tim Davie, director-general of the corporation, told Sky News in March that a commercial model for the licence fee would be a mistake that could leave the UK’s media market “looking exactly like America”.
A BBC spokesperson said on Friday: “We welcome confirmation that the licence fee will increase in line with inflation next year.”
They said they also looked forward to the debate about the future and that, as part of these discussions, the corporation would “run our biggest ever public engagement exercise in 2025 so that audiences are at the heart of shaping our future”.
The UK’s YouTubers, TikTok creators and Instagram influencers have been surveyed en masse for the first time ever, and are demanding formal recognition from the government.
The creator economy in the UK is thought to employ around 45,000 people and contribute over £2bn to the country in one year alone, according to the new research by YouTube and Public First.
But, despite all that value, its workers say they feel underappreciated by the authorities.
Image: Max Klyemenko, famous for his Career Ladder videos, wants the government to take creators like himself more seriously. Pic: Youtube
“If you look at the viewership, our channel is not too different from a big media company,” said Max Klymenko, a content creator with more than 10 million subscribers and half a billion monthly views on average.
“If you look at the relevancy, especially among young audiences, I will say that we are more relevant. That said, we don’t really get the same treatment,” he told Sky News.
Fifty-six per cent of the more than 10,000 creators surveyed said they do not think UK creators have a “voice in shaping government policies” that affect them.
Only 7% think they get enough support to access finance, while just 17% think there is enough training and skills development here in the UK.
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Nearly half think their value is not recognised by the broader creative industry.
The creative industries minister, Sir Chris Bryant, said the government “firmly recognises the integral role that creators play” in the UK’s creative industries and the fact that they help “to drive billions into the economy” and support more than 45,000 jobs.
“We understand more can be done to help creators reach their full potential, which is why we are backing them through our new Creative Industries Sector Plan,” he said.
Image: Ben Woods said the government needs to “broaden its lens” to include creators
“The UK has got a fantastic history of supporting the creative industries,” said Ben Woods, a creator economy analyst, Midia Research who was not involved in the report.
“Whether you look at the film side, lots of blockbuster films are being shot here, or television, which is making waves on the global stage.
“But perhaps the government needs to broaden that lens a little bit to look at just what’s going on within the creator economy as well, because it is highly valuable, it’s where younger audiences are spending a lot of their time and [the UK is] really good at it.”
According to YouTube, formal recognition would mean creators are factored into official economic impact data reporting, are represented on government creative bodies, and receive creator-specific guidance from HMRC on taxes and finances.
For some, financial guidance and clarity would be invaluable; the ‘creator’ job title seems to cause problems when applying for mortgages or bank loans.
Image: Podcaster David Brown owns a recording studio for creators
“It’s really difficult as a freelancer to get things like mortgages and bank accounts and credit and those types of things,” said podcaster David Brown, who owns a recording studio for creators.
“A lot of people make very good money doing it,” he told Sky News.
“They’re very well supported. They have a lot of cash flow, and they are successful at doing that job. It’s just the way society and banking and everything is set up. It makes it really difficult.”
The creative industries minister said he is committed to appointing a creative freelance champion and increasing support from the British Business Bank in order to “help creators thrive and drive even more growth in the sector”.
The government has already pledged to boost the UK’s creative industries, launching a plan to make the UK the number one destination for creative investment and promising an extra £14bn to the sector by 2035.
These influencers want to make sure they are recognised as part of that.
The chief rabbi has described the BBC’s response to anti-IDF chanting at Glastonbury as “belated and mishandled” – as the rap duo involved, Bob Vylan, said the UK government needed to talk about its “criminal inaction”.
Sir Ephraim Mirvis said “vile Jew-hatred” had been aired at the Somerset music festival and it was a “time of national shame”.
Confidence in the BBC’s “ability to treat antisemitism seriously” has been brought to a “new low”, he said in a post on X, adding that “outright incitement to violence and hatred” appeared to be acceptable if it was couched as “edgy political commentary”.
Ordinary people had not only failed to see incitement “for what it is” but had cheered it, chanted it, and celebrated it, he said. “Toxic Jew-hatred is a threat to our entire society,” he added.
Bob Vylan, posting a new statement on Instagram on Tuesday, said they were “not for the death of Jews, Arabs or any other race or group of people”.
Rather, they said they were for the “dismantling of a violent military machine” – the Israel Defence Forces.
Bob Vylan chanted “death to the IDF” at Glastonbury. As many as 95% of the IDF are thought to be Jewish.
The group said it was a “distraction from the story” and that whatever “sanctions” it received sanctions it received would also be a distraction.
Their US visas have been revoked and United Talent Agency, their US representatives, have dropped them.
Image: Bob Vylan with their MOBO award in London in November 2022. Pic: Reuters
Referring to the war in Gaza, they claimed the UK government does not want them to “ask why they remain silent in the face of this atrocity”, to “ask why they aren’t doing more to stop the killing” and to “feed the starving”.
They added: “The more time they talk about Bob Vylan, the less time they spend answering for their criminal inaction.
“We are being targeted for speaking up. We are not the first, we will not be the last, and if you care for the sanctity of human life and freedom of speech, we urge you to speak up, too.”
It has emerged that Tim Davie, the BBC’s director-general, was at Glastonbury when the duo led chants of “Death to the IDF”, which were broadcast live.
The prime minister’s spokesman, asked if the PM had confidence in Mr Davie, said Sir Keir Starmer has “confidence in the BBC”, adding: “The position of the director-general is a matter for the BBC’s board.”
Speaking in the Commons, Culture Secretary Lisa Nandy said “accountability” was important and it was something she had “impressed upon the BBC leadership”.
She added: “When you have one editorial failure, it’s something that must be gripped. When you have several, it becomes a problem of leadership.”
She said she’d called Mr Davie after Bob Vylan’s set had been broadcast to find out why it had aired, and why the feed had not been cut.
“I expect answers to these questions without delay,” she said.
Image: Lisa Nandy, the culture secretary, has claimed there is a ‘problem of leadership’ at the BBC. File pic: PA
Avon and Somerset Police has begun a criminal investigation and is reviewing footage of both Bob Vylan and Kneecap’s performances at Glastonbury.
The force said a senior detective had been appointed – and it had been contacted by people from around the world.
“We… recognise the strength of public feeling,” it said.
During Kneecap’s set, one member suggested starting a “riot” outside his bandmate’s forthcoming court appearance, before clarifying that he meant “support”.
Image: Moglai Bap and Mo Chara of Kneecap performing at Glastonbury. Pic: Reuters
Bob Vylan’s US visas have been revoked. They had been due to go on tour.
US deputy secretary of state Christopher Landau said action had been taken “in light of their hateful tirade at Glastonbury, including leading the crowd in death chants”.
“Foreigners who glorify violence and hatred are not welcome visitors to our country,” he added.
Bob Vylan have also been dropped by United Talent Agency, their US representatives.
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During Bob Vylan’s set, the duo performed in front of a screen that showed several messages, including one that claimed Israel’s actions in Gaza amounted to “genocide”.
The war in Gaza began after Hamas militants attacked Israel on 7 October 2023 and killed 1,200 people and took about 250 hostage.
Israel’s offensive in Gaza has led to the deaths of more than 56,500 people, according to the Hamas-run health ministry, which does not differentiate between civilians and combatants.
Media watchdog Ofcom has said the BBC “clearly has questions to answer” over the live stream from Glastonbury.
A BBC spokesperson said: “The director-general was informed of the incident after the performance and at that point he was clear it should not feature in any other Glastonbury coverage.”
The broadcaster respects freedom of expression but “stands firmly against incitement to violence”, they said.
They added: “The antisemitic sentiments expressed by Bob Vylan were utterly unacceptable and have no place on our airwaves…
“The team were dealing with a live situation, but with hindsight we should have pulled the stream during the performance. We regret this did not happen.”
A criminal investigation has been launched into the Glastonbury performances of Kneecap and Bob Vylan.
Police announced the decision on Monday afternoon after reviewing video footage and audio of both sets, which took place on Saturday.
It comes after the BBC said it regretted the decision not to pull the live stream for Bob Vylan’s Glastonbury performance, during which frontman Bobby Vylan shouted anti-IDF (Israel Defence Forces) chants.
Later on Monday, as the story had made headlines throughout the day, drummer Bobbie Vylan released a video statement on Instagram, saying politicians who have spent time criticising the band should be “utterly ashamed” for giving “room” to this over other issues.
He also addressed what was said on stage, saying: “Regardless of how it was said, calling for an end to the slaughter of innocents is never wrong. To civilians of Israel, understand this anger is not directed at you, and don’t let your government persuade you that a call against an army is a call against the people.”
Image: Moglai Bap and Mo Chara of Kneecap perform at Glastonbury. Pic: Reuters
In a statement, Avon and Somerset Police said that after reviewing footage of both performances, further enquiries are required and a criminal investigation is now being undertaken.
“A senior detective has been appointed to lead this investigation,” a spokesperson said. “This has been recorded as a public order incident at this time while our enquiries are at an early stage.”
The force said the investigation will be “evidence-led and will closely consider all appropriate legislation, including relating to hate crimes”.
“We have received a large amount of contact in relation to these events from people across the world and recognise the strength of public feeling,” it added. “There is absolutely no place in society for hate.”
What happened?
Image: Bob Vylan performing on the West Holts Stage, during the Glastonbury Festival at Worthy Farm in Somerset. Yui Mok/PA Wire
During Bob Vylan’s set, the duo performed in front of a screen that showed several messages, including one that said Israel’s actions in Gaza amount to “genocide”.
Bobby Vylan also led chants of “death to the IDF”.
The set was live streamed by the BBC as part of its Glastonbury coverage, but has not been made available on demand.
Politicians including the prime minister have criticised the performance. Glastonbury organiser Emily Eavis said the chants “crossed a line” and that there was no place at the festival for “antisemitism, hate speech or incitement to violence”.
A BBC spokesperson said the broadcaster respected freedom of expression “but stands firmly against incitement to violence”.
They added: “The antisemitic sentiments expressed by Bob Vylan were utterly unacceptable and have no place on our airwaves…
“The team were dealing with a live situation, but with hindsight we should have pulled the stream during the performance. We regret this did not happen.”
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What’s the Glastonbury controversy?
Media watchdog Ofcom said it was in talks with the BBC and that the broadcaster “clearly has questions to answer” over the stream.
Irish-language rap trio Kneecap were on stage afterwards. Before their appearance at the festival, there had been calls for Glastonbury to remove them from the bill – as rapper Liam Og O hAnnaidh (who performs as Mo Chara) is facing a terror charge, accused of displaying a flag in support of the proscribed group Hezbollah at a gig in London last November.
Glastonbury organisers kept them on the line-up, but the BBC chose not to stream their set live. An edited version was later made available on demand.
On stage, the band led chants of “f*** Keir Starmer”.
O hAnnaidh’s bandmate Naoise O Caireallain (Moglai Bap) said they would “start a riot outside the courts” for O hAnnaidh’s next appearance, before clarifying: “No riots, just love and support, and support for Palestine.”
Hundreds of people turned out in protest for his first court appearance earlier this month.
After the police investigation was announced, Culture Secretary Lisa Nandy criticised the “appalling and unacceptable” scenes at Glastonbury and said the government would not tolerate antisemitism.
She said she had called BBC director-general Tim Davie after the broadcast of Bob Vylan’s set to find out why it had aired, and why the feed had not been cut.
“I expect answers to these questions without delay,” she said.
Ms Nandy said she had spoken to members of the Jewish community, including attendees at Glastonbury, who said they were concerned by imagery and slogans and ended up creating their own “safe space”.
Christopher Landau, the US deputy secretary of state, said the band had been banned from the US ahead of a tour later this year due to their “hateful tirade” at the festival.
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Bob Vylan were set to perform in Chicago, Brooklyn and Philadelphia in the autumn. They are due to perform at Radar Festival in Manchester on Saturday and Boardmasters, a surfing and music festival in Newquay, Cornwall, in August.
Sharing a statement on Instagram after the Glastonbury set, Bobby Vylan said: “Teaching our children to speak up for the change they want and need is the only way that we make this world a better place.
“As we grow older and our fire starts to possibly dim under the suffocation of adult life and all its responsibilities, it is incredibly important that we encourage and inspire future generations to pick up the torch that was passed to us.”
The war in Gaza, which has continued for more than 18 months, began after Hamas militants launched attacks in Israel on 7 October 2023, killing 1,200 people and taking roughly 250 hostages.
More than 860 Israeli soldiers have been killed since the war began, more than 400 of them during the fighting in Gaza.
Israel’s offensive in Gaza has devastated the enclave and killed around 56,500 people, according to the Hamas-run health ministry, which does not differentiate between civilians and combatants, but says more than half of the dead are women and children.