TV licence fee to rise by £5.50 to £180 from April

The cost of a TV licence is to rise by £5.50 to £180 from 1 April, the government has announced.

The fee pays for BBC shows and services, and its cost increases in line with inflation every year until 2027, following an agreement made in 2022.

A TV licence currently costs £174.50. It increased by £5 last year, and £10.50 in 2024.

The government recently launched a consultation to ask the public what they think the next era of the BBC should look like, ahead of its charter renewal at the end of 2027.

When it launched its green paper, the government said it was "keeping an open mind about the future of BBC funding", adding: "We have not yet identified a preferred model."

Options include the current licence fee potentially being replaced with a different set of rates depending on which of the broadcaster's services people use.

The consultation document also suggests the possibility of an advertising or subscription model, which could replace the current system where all households pay a flat fee.

A BBC spokesman 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 funds the full range of BBC services and helps us deliver trusted news, the best homegrown storytelling, and unmissable content that brings people together."

The statement continued: "The government is currently considering the BBC's next Royal Charter and future funding arrangements beyond 2027.

"We welcome this debate and have been clear we want reform so we can continue to deliver a public service BBC that is independent, sustainably funded for the long-term, and meets audience needs for generations to come."

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."

They added: "Free licences remain available for over-75s on pension credit, with reduced fees for care home residents and blind individuals."

The government calculates the licence fee increase by using an annual inflation rate rather than a monthly one, which has been used in some previous years.

The fee applies to UK households if they download or watch any BBC shows on iPlayer, watch or stream shows live on any other online TV service, or watch or record programmes as they're being shown on any TV channel.

The rules apply to any device, including TVs, laptops, phones and tablets.

The annual cost of a black-and-white TV licence will also rise by £2 from £58.50 to £60.50 for the new financial year.