BBC licence fee set to rise to £180 per year from April as inflation takes hold.
The Department for Culture, Media and Sport has confirmed that the annual TV licence fee will increase by £5.50 to £180, effective from 1 April. This move is intended to give the BBC a stable financial footing to continue delivering high-quality content and supporting the UK's creative industries. The fee adjustment is in line with inflation, as specified in last year's settlement.
The government acknowledges that households are facing financial pressure, but assures that it will work to ensure the licence fee model remains fair and affordable for all. To mitigate costs, a simple payment plan will continue to offer smaller instalments, while those eligible for free licences – including over-75s on pension credit, care home residents, and blind individuals – will remain exempt.
The cost of owning a black-and-white TV will also rise by £2, from £58.50 to £60.50, starting in 2026-27. This development comes as the UK government reviews its charter for the BBC and considers alternative funding arrangements beyond 2027.
Meanwhile, S4C, a Welsh language channel reliant on licence fee funding, will receive approximately £100m in 2026-27 to support growth in the Welsh creative industries.
In a move that could impact millions of households, the BBC is reportedly exploring ways to link its iPlayer streaming service with TV licence payments. If successful, this initiative could lead to up to 40 million online accounts being linked to home addresses for the first time.
The Department for Culture, Media and Sport has confirmed that the annual TV licence fee will increase by £5.50 to £180, effective from 1 April. This move is intended to give the BBC a stable financial footing to continue delivering high-quality content and supporting the UK's creative industries. The fee adjustment is in line with inflation, as specified in last year's settlement.
The government acknowledges that households are facing financial pressure, but assures that it will work to ensure the licence fee model remains fair and affordable for all. To mitigate costs, a simple payment plan will continue to offer smaller instalments, while those eligible for free licences – including over-75s on pension credit, care home residents, and blind individuals – will remain exempt.
The cost of owning a black-and-white TV will also rise by £2, from £58.50 to £60.50, starting in 2026-27. This development comes as the UK government reviews its charter for the BBC and considers alternative funding arrangements beyond 2027.
Meanwhile, S4C, a Welsh language channel reliant on licence fee funding, will receive approximately £100m in 2026-27 to support growth in the Welsh creative industries.
In a move that could impact millions of households, the BBC is reportedly exploring ways to link its iPlayer streaming service with TV licence payments. If successful, this initiative could lead to up to 40 million online accounts being linked to home addresses for the first time.