Increase follows two-year freeze, as ministers say they will review alternate funding models

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The BBC licence fee will return to rising in line with the annual rate of inflation again for the first time in three years next year, as the government also said it will review alternate funding models as part of an “honest” conversation about the long-term future of the corporation.

The culture secretary, Lisa Nandy, said that from April next year the cost of an annual BBC licence fee will rise by £5 to £174.50, in line with the average consumer price index (CPI) measure of inflation of 2.96% between October 2023 and September 2024.