Colour TV licence to cost £3 more

The licence fee is administered by the TV Licensing Authority

The cost of a colour TV licence will rise by £3 to £142.50 from 1 April, the Department for Culture, Media and Sport has confirmed.

Black-and-white only licences will also go up, though only by £1, to £48.

The rises were announced two years ago as part of the six-year BBC funding settlement finalised in January 2007.

The increase represents a 2% rise on last year's licence fee of £139.50. The cost will continue to rise gradually to a maximum amount of £151.50 in 2012.

The rises will help support the digital switchover in 2012, including funding and delivery of a help scheme for vulnerable people.

The BBC is also in the process of moving some of its production to the north west of England.