BBC licence fee to increase from next year

The BBC licence fee will go up next year - from an annual fee of £159 to £169.50.

Culture Secretary Lucy Frazer also told MPs she was launching a review of the BBC's funding model as she announced the 6.7% increase.

The fee had been frozen and was set to increase by 9% from April 2024, meaning a hike of around £15.

However, Ms Frazer has settled for a smaller £10.50 rise.

The rise is based on the consumer prices index (CPI) inflation rate from September.

The culture secretary said the licence fee would now increase annually in line with CPI.

"The government is committed to supporting families as much as possible during these difficult times," she said.

"We recognise bill rises are never welcome and family budgets remain under pressure."

Mr Frazer said the fee was being "kept as low as possible" and that the upcoming rise amounted to an extra 88p a month.

This breaking news story is being updated and more details will be published shortly.

Please refresh the page for the fullest version.

You can receive Breaking News alerts on a smartphone or tablet via the Sky News App. You can also follow @SkyNews on X or subscribe to our YouTube channel to keep up with the latest news.