Licence fee rise cut by £4.50 after Rishi leans on the BBC

TV licence payers must pay £169.50 next year an extra £10.50 - after Prime Minister Rishi Sunak restricted a price hike to 6.7%.

- Emily Braeger

The BBC had expected a rise closer to £15 - around 9% - based on the average rate of inflation over the past year, the traditional measure.

But the Government is understood to have pressed bosses to settle for September's 6.7% inflation rate.

The licence fee has been frozen for two years and the smaller increase from April - has left the Corporation scrambling to deal with a £90million funding shortfall.

Mr Sunak warned earlier this week that the BBC must be "realistic" given many households are struggling with bills.

And yesterday Culture Secretary Lucy Frazer revealed the Government is launching a review of the BBC's funding model.