The cost of a colour TV licence will increase by #4 next month to #135.50, it was confirmed today.
The Department for Culture, Media and Sport said licence fees will go up 3% annually in 2007 and 2008, followed by three years of 2% rises and an increase of up to 2% in 2012.
It means that from April, the price of a colour licence will go up to #135.50, with the charge levied on a black and white set moving to #45.50.
It follows a settlement over the licence fee announced by the Government in January. At that time, BBC director general Mark Thompson expressed "real disappointment" over the decision.
He said it would leave a #2 billion shortfall over the next six years between what the corporation believed was needed to deliver its vision and what will actually be available.
Speaking today, broadcasting minister Shaun Woodward said: "The licence fee enables the BBC to deliver the very best quality TV programmes.
"But it isn’t just about entertainment. The BBC will support digital switchover and will widen its geographical reach as it begins a major move to the North West.
"We have delivered a fair settlement for the BBC and provided it with certainty that no other broadcaster has. It is now the job of the BBC Trust to ensure that licence fee-payers get value for money."