BBC TV licence fee ‘could be SCRAPPED by end of 2027’ in huge relief for millions of Brits facing price hike next year

THE BBC TV licence fee "could be scrapped by the end of 2027" in huge relief for millions of Brits facing its price hike next year.

In plans being considered by the Culture Secretary Lisa Nandy the network will be funded by general taxation instead.

This could mean the annual fee of £174.50, which is due to increase by £5 this April, is scrapped in December 2027.

If Nandy goes ahead with these plans the BBC could become a mutual organisation - a business which is owned and run by its members.

Programmes would be funded by taxes collected by the Government.

Nandy confirmed in a statement in November that a review of the corporation's governing charter is expected to start this year.

She added that the government would uphold the licence fee until the end of the Charter period, to ensure the BBC was on a "stable financial footing".

As agreed in 2022, the license cost will continue to rise in line with inflation each year until 2027.

She said the review was intended to ensure the broadcaster adapts to the "next generational shift" and is built up for success "long into the future".

The Culture Secretary assured the public however, that the simple payment plan - a scheme to help those with financial struggles to pay for their licence - would be extended.

New legislation is expected to be introduced that could double the number of vulnerable households benefiting from the support to 500,000 by 2027.

The Government benefit is available to pensioners and tops up your income to a minimum level.

Over 968,000 people over the age of 75 currently claim pension credit, according to the DWP's latest statistics.

But hundreds of thousands aren't claiming it when they could be, meaning they're missing out on an average £3,500 extra a year.

The government also estimates that a further 760,000 people over 66 aren't pension credit even though they're eligible.

Not only does the benefit top up your income, it comes with a host of added perks too, including a free TV licence for those aged over 75.

Anyone claiming the benefit can apply for the TV licence discount via the TV licencing website or by calling 0300 790 6117.

The annual charge has faced years of scrutiny under the Conservative government, with it being frozen for two years at £159 before it was increased earlier this year.

It was conceived at a time of "linear viewing" habits, when the population watched TV at the time of broadcast.

However, changes including on-demand TV and other technologies have reportedly challenged the existing model.

A BBC spokesperson said: "We want everyone to get value from the BBC, which is why we’re focused on delivering what audiences want from us  – trusted news, the best homegrown storytelling and the moments that bring us together.

“The public cares about the BBC and later this year, we will launch our biggest ever public engagement exercise so audiences can help drive and shape what they want from a universal and independent BBC in the future. We look forward to engaging with government on the next Charter.”

The Department for Culture has been contacted for comment.