TV licence fee to rise £4

The cost of a colour TV licence is to rise by £4 to £116 from April, Culture Secretary Tessa Jowell confirmed today.

In a written Parliamentary statement Ms Jowell said the fee for a black and white licence would increase to £38.50.

Both changes will come into effect from April 1.

In her statement, Ms Jowell said the increases were in line with a funding formula for the BBC intended to enable it to provide "a strong and distinctive schedule of high quality programmes and remain at the forefront of broadcasting technology".

The funding formula allows for the licence fee to be increased by the retail price index plus 1.5% each year until 2006/2007.

Last month, Ms Jowell warned the BBC that it

would have to justify the licence fee when its charter comes up for renewal in 2006.

She stressed that the corporation "must be able to justify to its audiences that it uses their money, and earns their support, by offering services that extend the range and enhance the standards of what is available to them."

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