STORY
The Department for Culture, Media and Sport has announced that the annual cost of a TV licence will rise to £180 from 1 April 2026. This increase, which represents a rise of £5.50 from the current rate of £174.50, has been calculated in line with the consumer price index (CPI) as part of the 2022 Licence Fee Settlement. Households using black and white television sets will also see a proportionate increase, with their annual fee rising by £2 to a new total of £60.50.
The government has stated that this adjustment is necessary to provide the BBC with a stable financial footing, ensuring it can continue to deliver its public service mission and support the UK’s wider creative industries. According to recent figures, the BBC remains the nation’s most prominent media brand, with 94% of UK adults using its services every month. Beyond the BBC, the uplift will also benefit the Welsh-language broadcaster S4C, which is expected to receive approximately £100 million in funding for the 2026/27 period.
To mitigate the impact on households facing financial pressure, several support measures remain in place. Free licences will continue to be available for residents aged 75 and over who receive Pension Credit, while blind individuals and those living in residential care remain eligible for significant discounts. Additionally, the government highlighted the continued availability of the Simple Payment Plan, which allows licence holders to spread the cost of the fee across smaller, more manageable instalments.
This announcement comes as the government progresses with its Charter Review Green Paper, a public consultation exploring various options for the future funding of the BBC beyond the current charter period, which ends on 31 December 2027. Under the current agreement, the fee is set to rise once more in line with inflation in April 2027 before the settlement expires. Ministers have emphasised their commitment to ensuring that any future funding model is sustainable, fair and affordable for all licence fee payers across the country.