THE BBC TV licence fee is set to be scrapped in five years with the broadcaster’s funding frozen for the next two years, the government has said.

The annual payment, which normally changes on April 1 each year, is expected to be kept at the current rate of £159 until April 2024, with additional ways of funding being considered by Nadine Dorries.

The culture secretary said the next announcement concerning the BBC’s licence fee “will be the last” as a new funding model is being considered for when the latest deal expires in 2027.

New ways of funding the BBC being discussed

She wrote on Twitter: “This licence fee announcement will be the last.

“The days of the elderly being threatened with prison sentences and bailiffs knocking on doors are over.

“Time now to discuss and debate new ways of funding, supporting and selling great British content.”

How much is the TV licence fee?

The annual TV Licence fee is set by the government which announced in 2016 that it would rise in line with inflation for five years from April 1 2017.

In February last year, is was announced the cost of the annual TV Licence fee would increase from £157.50 to £159 from April 1 2021.

The cost of an annual black and white licence rose from £53.00 to £53.50.

BBC source responds to criticism of the TV licence fee

The BBC has previously come under fire over the abolition of free TV licences for all over-75s, with a grace period on payment because of the Covid-19 pandemic having ended on July 31.

Only those who receive pension credit do not have to pay the annual sum.

A BBC source told the Sunday Times: “There are very good reasons for investing in what the BBC can do for the British public and the creative industries, and the (profile of the) UK around the world.

“Anything less than inflation would put unacceptable pressure on the BBC finances after years of cuts.”