Skip to content


BBC's efficiency assessed in licence fee settlement

Summary

As part of the process of setting the level of the television licence fee from April 2007, the Department for Culture, Media and Sport (DCMS) has made an assumption about the level of efficiency savings the BBC can deliver.

This report by the National Audit Office, ‘How the DCMS assessed the BBC's as part of the licence fee settlement’ (HC 183), examines whether the Department has reasonable grounds on which to base its assessment of the BBC's scope for efficiency savings.

Findings include that the BBC will not be at the "efficiency frontier" by 2008 but that the BBC was beginning to deliver the value for money programme, but that the absence of transformational change could limit efficiencies. However, consultants also concluded that the BBC paid more per hour for programmes and that the BBC is commissioning programmes with a more expensive set of production components.

Law-Making Explained

This is a House of Commons Paper (HC 183): it is a report from the National Audit Office (NAO).

Find out more about House of Commons Papers.

How does it affect me?

With the announcement on 18 January 2007, that the TV licence fee would rise by 3% over each of the next two years, meaning that the current fee of £131.50 could rise to a maximum £151 by 2012, assessments of the BBC's efficiency are highly relevant.

Read the 18 January 2007 Statement on Licence Fee by the Secretary of State.

Read more about DCMS media regulation.

Find out more about the BBC Charter Review.

Have Your Say Now


Find out how to have your say