A spokesman for the Department for Culture, Media and Sport (DCMS) said: "The government recognises the financial pressures on households and is committed to ensuring the BBC's funding model is sustainable, fair and affordable.
"The government has committed to the licence fee for the remainder of this charter period.
"To support the public with the cost of the TV licence, we will also continue to support the simple payment plan to spread payments through smaller instalments."
Do you have to pay the licence fee?
Whether you need a TV licence depends on your viewing habits.
When you need a TV licence
A TV licence must be held by a UK household if anyone in the household does any of the following:
- Watches or records programmes as they are being shown on any TV channel
- Watches live broadcasts on any online service
- Downloads or watches anything on BBC iPlayer
The above applies to any device, including laptops, phones and tablets, not just TVs. Additionally, students living away from home during term time only need their own TV licence if they are watching live broadcasts or iPlayer on a television. They should be covered by the TV licence at their home address if they are using a portable device like a phone, tablet or laptop.
When you don't need a TV licence
You do not need a TV licence for the following:
- Watching shows on YouTube, Netflix, Disney+, Prime Video, ITVX, Channel 4, or any other streaming platform, so long as you are not watching a programme as it is being broadcast live, such as a football match on YouTube or live boxing on Netflix.
- Watching physical media, such as BluRays or DVDs, on your TV, or to listen to BBC broadcasts over the radio or BBC podcasts.
What is the penalty for not having a TV licence?
If you do not have a TV licence and are found to be watching, recording or downloading programmes that require one, you could be prosecuted. The maximum penalty is £1,000, plus any legal costs.
If you only have a black-and-white TV, there is a separate black-and-white TV licence that will cost £60.50 from 1st April 2026, up £2 from the current price of £58.50.
Who qualifies for a free TV licence?
Not everyone who needs a TV licence has to pay for one. The licence is free for over-75s claiming pension credit, though you can apply when you are 74 so that the discount kicks in on your birthday. Care home residents pay a reduced fee of £7.50 if they have a TV in their room, while blind people get a 50% discount on the full licence cost.
A DCMS spokesperson confirmed: "Free licences remain available for over-75s on pension credit, with reduced fees for care home residents and blind individuals."
Unlike social tariffs from telecoms providers, there is no reduced rate for people claiming Universal Credit. However, there is the 'Simple Payment Plan' for those in financial difficulty. This allows qualifying customers to choose from a fortnightly or monthly payment plan and offers some flexibility if a payment is missed, as it can be spread across the remaining payments for the year. If payments are missed three months in a row, customers are removed from the plan.
To be eligible, you must have:
- been visited by a TV Licensing Enquiry Officer to check if you need a licence
- previously held a licence that was cancelled within the last six months because of missed payments
- been referred by a not-for-profit money advice organisation
- held a Simple Payment Plan licence within the previous 12 months
You can find out more on the TV licensing website.
What does the licence fee pay for?
The TV licence fee is part of the way the BBC is funded. This means the money paid by licence holders goes towards not just BBC programmes, but also news, weather, radio, podcasts and education resources. Part of the licence fee also helps fund the Welsh-language channel S4C.
A BBC spokesperson said: "The licence fee ensures the BBC has the financial stability it needs to deliver for audiences and support the creative industries across the UK."
It is a unique funding structure that attracts a lot of criticism. It is designed to avoid the BBC being directly funded by the government of the day, in order to keep it at arms length from political pressure and allow it to budget its wide range of services for a longer period. However, critics see it as a tax that offers poor value for money.
Last year, the government launched a consultation to ask the public how the BBC should be funded in the future, ahead of the corporation's charter renewal at the end of 2027. A new funding model could involve a subscription, advertising or an extra payment for premium content. However, the government could yet choose to stick with the licence fee system for a while longer.
Lisa Nandy, the culture secretary, said "it is essential that the BBC can hold governments of any persuasion to account, including ours, without fear or favour and without being heavily reliant on direct funding from government" and that the BBC "has to have sustainable funding in order to thrive".
What to do if you cannot afford the TV licence fee increase
With a range of other household bills on the rise, the licence fee increase may be one added expense too many for some. The obvious solution is to simply cancel your renewal and stick to programmes that do not fall under the licence restrictions, such as anything on streaming services - with the exception of BBC iPlayer - that is not being broadcast live. You will still be able to listen to BBC radio stations and podcasts on BBC Sounds.
Another option could be to spread the cost of the licence fee by paying in monthly instalments. This would make the extra £5.50 annual cost just under 46p a month on average. Keep in mind that the standard monthly payment plan, which is different to the the 'Simple Payment Plan', is made up of six higher instalments for the first six months that are then halved for the last six months, rather than 12 equal payments.
You could also consider how much you are paying for your other TV-related bills, and cut back elsewhere to even things out. Disney+ and Netflix both offer reduced-cost subscriptions if you are willing to sit through some ads, while NOW TV and Sky will often reduce bills for customers who say they are looking to cancel. Think about how much value for money you get from the services you currently pay for and look up what is going to be released in the coming months. You may find that you can skip a streaming service for a few moths until the new series of your favourite show comes out. You may even find it offers you a discount to come back.
It may worth giving some attention to your other household bills too. Read our article 'How to save money on your household bills' to learn more.
£200 Pension Cashback Offer
Make a qualifying deposit or transfer a pension to our partner Interactive Investor.
- Deposit or transfer a pension of at least £20k and you could earn £200 cashback
- Terms and Fees apply, Capital at risk
- New & Existing customers opening a SIPP
- Offer ends 31st July 2026
Before starting your transfer, check you won't lose any valuable benefits (such as guaranteed annuity rates or a lower protected pension age) and find out what exit fees you might have to pay
