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”.

“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.

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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”.

Irish language rap group Kneecap have won their discrimination case against the UK government after former business secretary Kemi Badenoch refused them funding.

The trio – who have been criticised by former Tory government members for some of their lyrics – launched legal action, claiming the decision to withhold the grant discriminated against them on grounds of nationalist and political opinion.

After a brief hearing at Belfast High Court on Friday, it was agreed the government would pay the band £14,250 – the same amount the grant was for.

The group’s application to the Music Export Growth Scheme, which supports UK-registered artists in global markets, was initially accepted by the British Phonographic Industry.

But it was later refused by Mrs Badenoch – now Conservative leader – when she was business secretary, as the grant is overseen by the Department for Business and Trade and the Department for Culture, Media and Sport.

At the time, a government spokesperson said it fully supported freedom of speech, but that it was “hardly surprising” it did not want to hand out UK taxpayers’ money to those opposed to the United Kingdom.

The band said on Friday it would donate the money to two youth organisations in Belfast – one from a nationalist and one from a unionist area.

‘They have tried to silence us’

Band member DJ Provai arrived at court in an old Land Rover styled to look like a police vehicle, which was bearing the Irish and Palestinian flags and blaring loud music.

He was wearing his usual Irish tricolour balaclava, which he removed to enter the court building.

Speaking after the hearing, DJ Provai, whose real name is JJ O’Dochartaigh, said the band’s motivation was “equality”.

“For us, this action was never about £14,250; it could have been 50p,” he said.

“This was an attack on artistic culture, an attack on the Good Friday Agreement itself and an attack on Kneecap and our way of expressing ourselves.”

He added: “The former secretary of state Kemi Badenoch and her department acted unlawfully; this is now a fact.

“They have tried to silence us and they have failed.”

A statement from the Department for Business and Trade said the government’s priority is to “try and reduce costs and help protect the taxpayer from further expense”.

It said the government will not contest Kneecap’s challenge as it does not believe it is in the public interest.

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Who are Kneecap?

Formed in 2017 in west Belfast, Kneecap consists of three friends who perform under the stage names Mo Chara, Moglai Bap and DJ Provai.

The group have previously voiced views in favour of Irish unity and a particularly provocative poster for their 2019 “Farewell to the Union” tour angered the Conservative Party.

Their song Brits Out (which they told Sky News earlier this year is a tongue-in-cheek poke at government rule) also caused controversy, while their references to drug-taking led to them being banned from Irish public service broadcaster RTE.

But the band has enjoyed huge success both on stage and screen.

Earlier this year they released a biopic film, also called Kneecap, starring Irish-German actor and Oscar nominee Michael Fassbender.

The film was likened to Trainspotting, 8 Mile and 24 Hour Party People by critics and in January, it won the audience award at the Sundance Film Festival, an internationally recognised showcase for independent cinema.

It has also been named as Ireland’s official submission for the best international feature film shortlist at the 2025 Oscars.

Gregg Wallace has thanked people for their “support” in a video posted on Instagram after he stepped down from MasterChef over allegations he made inappropriate sexual comments on a range of programmes over 17 years.

In the short video clip, the TV presenter said: “I would like to thank all the people getting in touch, reaching out and showing their support. It’s good of you.

“Thank you very much.”

Broadcaster Kirsty Wark is among 13 people who have made claims, with Wallace being investigated by MasterChef’s production company Banijay UK.

In an interview with the BBC, the Newsnight presenter, who was a celebrity contestant on MasterChef in 2011, claimed Wallace used “sexualised language”.

“There were two occasions in particular where he used sexualised language in front of a number of people and it wasn’t as if anyone engaged with this. It was completely one-way traffic,” Wark said.

“I think people were uncomfortable and something that I really didn’t expect to happen.”

Sky News has contacted Wallace’s representative for comment.

Wallace avoided questions when asked by Sky News about the claims.

‘Fully cooperating’

Banijay UK said the complaints were made to the BBC this week by “individuals in relation to historical allegations of misconduct while working with Gregg Wallace on one of our shows”.

The company said the 60-year-old, who has been a co-presenter and judge of the popular cooking show since 2005, was “committed to fully cooperating throughout the process”.

“Whilst these complainants have not raised the allegations directly with our show producers or parent company Banijay UK, we feel that it is appropriate to conduct an immediate, external review to fully and impartially investigate,” the company said.

“While this review is under way, Gregg Wallace will be stepping away from his role on MasterChef and is committed to fully co-operating throughout the process.

“Banijay UK’s duty of care to staff is always a priority and our expectations regarding behaviour are made clear to both cast and crew on all productions, with multiple ways of raising concerns, including anonymously, clearly promoted on set.

“Whilst these are historical allegations, incidences brought to our attention where these expectations are not met, are thoroughly investigated and addressed appropriately.”

A BBC spokesman said: “We take any issues that are raised with us seriously and we have robust processes in place to deal with them.

“We are always clear that any behaviour which falls below the standards expected by the BBC will not be tolerated.

“Where an individual is contracted directly by an external production company we share any complaints or concerns with that company and we will always support them when addressing them.”

The TV star’s lawyers say “it is entirely false that he engages in behaviour of a sexually harassing nature”, BBC News reports.

Previous investigation

Last month, Wallace responded to reports that a previous BBC review had found he could continue working at the corporation following reports of an alleged incident in 2018 when he appeared on Impossible Celebrities.

Wallace said those claims had been investigated “promptly” at the time and said he had not said “anything sexual” while appearing on the game show more than half a decade ago.

In an Instagram post following an article in The Sun newspaper, he wrote: “The story that’s hitting the newspapers was investigated promptly when it happened six years ago by the BBC.

“And the outcome of that was that I hadn’t said anything sexual. I’ll need to repeat this again. I didn’t say anything sexual.”

It comes as singer Sir Rod Stewart criticised Wallace on Instagram, claiming he “humiliated” his wife, model and TV personality Penny Lancaster, on the show in 2021.

He wrote: “Good riddance Wallace… You humiliated my wife when she was on the show, but you had that bit cut out didn’t you?

“You’re a tubby, bald-headed, ill-mannered bully.”

Alongside MasterChef, Wallace presented Inside The Factory for BBC Two from 2015.

Wallace has featured on various BBC shows over the years, including Saturday Kitchen, Eat Well For Less, Supermarket Secrets, Celebrity MasterChef and MasterChef: The Professionals, as well as being a Strictly Come Dancing contestant in 2014.

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He was made an MBE for services to food and charity last year.

Recorded episodes of MasterChef: The Professionals featuring Wallace will be transmitted as planned, the PA news agency understands.