The Department for Work and Pensions (DWP) has confirmed that state pensioners aged 75 and over who are on a low income can reduce their BBC TV Licence bill to £0 with a single claim for Pension Credit. A standard TV Licence currently costs £180 per year (£60.50 for black and white sets), and the fee is set to rise again in April 2027 in line with CPI inflation, following a government agreement to increase it in line with inflation from April 1, 2024, for the remaining four years of the Charter period ending in 2027.
Pension Credit Unlocks Free TV Licence
Pension Credit provides extra money to state pensioners on a low income. Following a 4.8% increase on April 6, 2026, the benefit is now worth an average of £4,300 per year, according to the DWP. Under the new April 2026/27 rates, single claimants can top up their income to £238 per week, while joint weekly income for couples can be topped up to £363.25 per week. Crucially, Pension Credit also unlocks access to a free TV Licence for those aged 75 or over, effectively cutting the £180 annual bill to £0.
Confirming the Pension Credit uplift and its associated perks, the DWP stated: “Pension Credit will also rise by 4.8% and be worth an average of £4,300 a year, unlocking further support including help with housing costs, council tax and free television licenses. Between 2026 and 2027, the government will provide a £6 billion boost to spending on State Pensions and pensioner benefits.”
How to Apply and Eligibility
According to the DWP, it takes just 16 minutes on average to apply for Pension Credit. If eligible, the benefit can provide access to thousands of pounds worth of extra support. For those already receiving Pension Credit, they can apply for a free TV Licence when they turn 74, but must continue paying for their licence until the end of the month before their 75th birthday. After that, the free licence takes effect.
Other Ways to Reduce or Avoid the TV Licence Fee
For those who do not qualify for Pension Credit, other options exist to reduce or avoid the TV Licence fee. According to TV Licensing, cancelling a licence is possible if you no longer watch live TV on any channel (e.g., BBC, ITV, Channel 4), pay TV services (e.g., Sky, Virgin Media), live streaming services (e.g., YouTube, Netflix, Amazon Prime Video), or use BBC iPlayer. This includes recording or downloading programmes. If you cancel before your licence expires, you may be eligible for a refund.
Residents in residential care homes, supported housing, or sheltered accommodation may qualify for a reduced fee TV Licence. Individuals who are blind (severely sight impaired) can apply for a 50% discount with appropriate evidence. For those who must pay the full rate, sharing a TV Licence within a household can reduce costs, as licences are per household, not per person. However, if tenants have separate tenancy agreements and watch TV in their own rooms, each must have their own licence.
It is also important to note that a TV Licence is not required for watching on-demand services like Netflix, Disney+, All 4, Amazon Prime Video, YouTube, or DVDs and Blu-rays—unless watching live events on streaming services. Avoiding live TV and BBC iPlayer can save £180 per year. However, watching or recording live TV without a licence can result in a fine of up to £1,000.
