The government has announced some major changes to the BBC TV licence's funding model, with funds to be frozen at current rates until 2024.
There have been a series of discussions between culture secretary Nadine Dorries and BBC chiefs about how the broadcaster will be funded going forward.
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.
Here’s everything you need to know about the TV licence including why you need to pay it and what happens if the BBC gets rid of it.
What is the BBC's TV licence fee and why do we have to pay it?
TV licensing is a form of taxation which is used to raise revenue that funds the BBC. The money raised from the licence fee pays for BBC shows and services - including TV, radio, the BBC website, podcasts, iPlayer, local journalism and apps.
Watching live TV without a licence is against the law and is punishable by a fine of up to £1,000 as well as prosecution.
The TV licence fee was set by the government in 2016 and changes every year on April 1. Currently the rates are £159 a year, and £53.50 for black and white televisions.
With Nadine Dorries considering new ways to fund the BBC, the fee is set to be frozen at the current rates until April 2024.
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."
Is the TV licence fee being scrapped and what will happen if the BBC gets rid of it?
The BBC was expecting a rise to its licence fee to help pay for its expenses and programming during the current period of inflation. And had it taken place, the licence fee would have risen to £167 a year.
But the freeze at current rates of £159 is set to last for two years, after which new ways to pay for the public broadcaster will be discussed again.
The licence fee is expected to exist until 31 December 2027, after which the government is considering introducing a subscription model to the television fee.
This has been made to appeal to Conservative backbench MPs over ways to mitigate the rising cost of living, according to the Sunday Times.
