The Department for Work and Pensions (DWP) has confirmed that state pensioners aged 75 and over on a low income can reduce their TV licence bill to £0 with a single claim for Pension Credit.
Currently, a TV licence costs £180 per year, or £60.50 per year for a black and white television set, following a price rise in April. The fee is due to rise again in April in line with CPI inflation. According to forecasts from the Office for Budget Responsibility (OBR), the annual fee is set to increase to £202.60 by 2031, up from its current level of £180, if it continues to rise with inflation.
This comes as the number of people paying the BBC licence fee is expected to fall by 2.7 million over the next five years to just 19 million, as more households favour other streaming services such as Netflix, Disney Plus and Amazon Prime over the BBC.
Pension Credit unlocks free TV licence
Pension Credit provides extra money to people in England, Scotland and Wales on a low income who have reached State Pension age, and it is worth £4,300 on average per year. In the 2026 to 2027 tax year, single claimants can top up their income to £238 per week, or their joint weekly income to £363.25 per week if they have a partner.
The benefit also unlocks further financial support, including a free TV licence for those aged 75 or over. As a result, eligible older pensioners can cut their TV licence bill from £180 per year down to £0 with a single claim.
Confirming the Pension Credit uplift in April and the perks it unlocks, the DWP said: "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 other savings
According to the DWP, it takes just 16 minutes on average to apply for Pension Credit. If you already receive Pension Credit, you can apply for a free TV licence when you are 74, but you will need to continue paying for your licence until the end of the month before your 75th birthday, after which you will be covered by the free licence.
For those who do not meet the eligibility criteria for Pension Credit, there are other ways to reduce the TV licence bill or avoid the fee entirely. According to TV Licensing, it can be worth cancelling a TV licence if you no longer watch live TV on any channel, TV service or streaming service, or use BBC iPlayer. If you fall into this category, you can cancel your licence and may be eligible for a refund if, before your licence expires, you will not be doing any of the following: watching TV on any channel such as BBC, ITV, Channel 4, U&Dave and international channels; watching TV on pay TV services like Sky, Virgin Media and EE TV; watching live TV on streaming services such as YouTube, Netflix and Amazon Prime Video; or using BBC iPlayer, including recording and downloading programmes on any device.
If you live in a residential care home, supported housing or sheltered accommodation, you may be entitled to a reduced fee TV licence. If you are blind (severely sight impaired) and can provide the appropriate evidence, you can apply for a 50% discount on your TV licence.
TV licences are per household, not per person, so if you live in a house with several people, you do not all need to have one and could share the cost of one licence. This applies if you watch TV in a single shared area or have a joint tenancy agreement; if you have separate tenancy agreements and watch TV in your own room, you will need to pay for your own licence.
You do not need a TV licence to watch streaming services such as Netflix and Disney Plus (apart from live events on streaming), on-demand TV through services like All 4 and Amazon Prime Video, videos on websites such as YouTube, or DVDs and Blu-rays. If you are happy to stick to watching any of these and not watch or record any live TV or BBC iPlayer, you can save yourself £180 per year. However, if you do watch or record live TV without a TV licence, you can be issued a fine of up to £1,000.
