The hike will serve as a massive blow to millions of people already struggling with rising costs.
The BBC TV licence fee is rising yet again (Image: Getty)
The BBC TV licence fee is set to rise to £180 a year in a massive hammerblow to millions of households already struggling with rising costs. The planned increase in the licence fee is expected to hit millions of households already grappling with rising living costs, despite an earlier agreement between the BBC and the former government to keep the annual charge under £175.
It means that the cost of an annual colour TV licence will rise by £5.50, or the equivalent of an extra 46p a month. A TV licence is required for any household that watches live television on any channel or accesses BBC iPlayer on any device. You don’t need one for on‑demand or catch‑up services (other than BBC iPlayer), or for streaming platforms like Netflix, Disney+ or YouTube, unless you’re viewing live broadcasts.
This means the cost of an annual colour TV licence will rise by £5.50 (Image: Getty)
According to the DCMS, the rise is based on the formula that links the licence fee to the consumer price index until the end of the current BBC Charter. The annual adjustment is intended to help the BBC maintain financial stability so it can continue fulfilling its Mission and Public Purposes.
In November, the Labour Government confirmed that the fee would increase from £169.50 to £174.50 starting in April. The BBC went on to collect nearly £4 billion from the charge in 2025.
Shared homes classed as Houses in Multiple Occupation generally only need one TV licence, but if tenants have separate agreements for their individual rooms, each person may need their own. You might also require an additional licence for a second property or caravan if someone is watching TV at your main home while you’re viewing in the other location.
Watching live TV or BBC iPlayer without a valid licence can result in prosecution and fines of up to £1,000. The government says it recognises the financial pressures facing households and remains committed to keeping the BBC’s funding system fair, sustainable and affordable. It has also promised to retain the licence fee for the rest of the current Charter period.
To help people manage the cost, support for the Simple Payment Plan will continue, allowing payments to be spread into smaller instalments. Free licences remain available for over‑75s who receive Pension Credit, and reduced rates apply for care‑home residents and people who are blind.
A Commons Public Accounts Committee report found that 2.9 million people avoided paying the £174.50 annual licence fee, depriving the BBC of an estimated £550 million in revenue.
A further £617 million was lost due to 3.6 million households declaring that they did not require a licence.
