Mean

The BBC six-year licence fee settlement signed by Nadine Dorries back in January 2022 put in place a two year freeze and then said "From the third year of the settlement period (i.e. from 1 April 2024 and for each subsequent year of the period until 31 March 2028), the Licence Fee will then increase annually in line with CPI inflation". 

The last time the BBC has an increase 'in line with inflation' it was calculated by Government using the Consumer Prices Index (CPI) rate of inflation, measured as the average rate of CPI over the 12 months to September 2020, which worked out at 1.075%.  The spot measurement of CPI in September 2020 was 0.5%, so using the twelve month average was more generous to Auntie, and most would argue, fairer. 

As we know, inflation over the twelve months to September 2023 peaked at 11.1% in October 2022, and the average over the twelve months to works out at 9.0%. However, it looks like the Government is opting for the spot rate in September of 6.7%, hobbling the BBC further.