The number of BBC TV licences has dropped by more than half a million in a single year, according to the corporation's annual report. By the end of the 2025/2026 financial year, active licences stood at 23.3 million, a decrease of 540,000 from the previous year's 23.8 million. The decline is attributed to fewer households watching live TV or using BBC iPlayer, with the number of households declaring they do not need a licence rising by 62,000 to 3.7 million.
Long-Term Decline Accelerates
Since the start of the decade, when licences totalled 25.9 million, the figure has fallen by over 2.5 million. BBC chief financial officer Berangere Michel stated: "We can see that the large majority of the reason for the decline is people... not consuming licensable content. That is a trend that I don't see changing back. In fact, I see it accelerating, and that is one of the reasons why we would like a reform of the funding."
Director general Matt Brittin added: "This is a moment of real jeopardy, not just for the BBC but for public service broadcasting and the UK as a whole."
Who Needs a TV Licence?
A TV licence is legally required if you watch or record live TV on any channel or service, including Freeview, Sky, Virgin Media, ITVX, Channel 4, YouTube, Amazon Prime Video, or Sky Go. It is also needed for anything watched or downloaded on BBC iPlayer, whether live, catch-up, or on-demand. Many mistakenly believe a licence is only for BBC channels, but it applies to all live broadcasts.
When You Don't Need a Licence
You do not need a licence for on-demand content on services like ITVX, Channel 4, or Channel 5 (excluding live streams), nor for subscription streaming apps such as Netflix, Disney+, Amazon Prime Video, or Apple TV+ for on-demand movies and shows. On-demand videos on YouTube, TikTok, and physical media like DVDs or Blu-rays also do not require a licence.
How to Opt Out
Households that genuinely never watch live TV or use BBC iPlayer can opt out by completing a "No Licence Needed" declaration on the official TV Licensing website. The process involves answering six yes-or-no questions. A TV Licensing statement warns: "If you tell us you don't need a licence we may visit you to check. If we then find that you have been watching, recording or streaming programmes illegally, you risk prosecution and a fine of up to £1,000 (£2,000 in Guernsey) plus any legal costs and compensation you may be ordered to pay."
