Pension Credit can be the key to wiping out the annual TV Licence cost for eligible state pensioners. The Department for Work and Pensions (DWP) has confirmed that state pensioners aged 75 and over on a low income can bring their bill down to £0 with a single claim for the benefit.
A TV Licence currently costs £180 a year, or £60.50 for a black and white set. That annual fee is set to rise again next April, as the UK Government agreed to increase the licence fee in line with CPI inflation from 1 April 2024 for the remaining four years of the Charter period, which runs until the end of 2027. Households therefore face another price hike in 2027.
Households need a TV Licence to watch or record programmes on a TV, computer, or other device on any channel or service as they are broadcast, including on-demand BBC programmes on BBC iPlayer, as well as live events on streaming services.
How Pension Credit can help
Pension Credit provides extra money to people in England, Scotland and Wales on a low income who have reached State Pension age. According to the DWP, it is worth £4,300 on average per year. Under the 2026/27 rates, single claimants can top up their income to £238 per week, or a joint weekly income of £363.25 if they have a partner. The benefit also unlocks further support, including a free TV Licence for those aged 75 or over.
Confirming the Pension Credit uplift in April, 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.”
Claiming a free TV Licence
Applying for Pension Credit takes just 16 minutes on average, according to the DWP, and can give eligible households access to thousands of pounds worth of extra support. If you already get 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 that, you are covered by the free licence.
If you don't qualify for Pension Credit
For those who do not meet the eligibility criteria for Pension Credit, there are other ways to reduce a TV Licence bill, or avoid the fee entirely. According to TV Licensing, it can be worth cancelling your licence if you no longer watch live 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, like 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, like YouTube, Netflix, and Amazon Prime Video
- using BBC iPlayer
This includes recording and downloading programmes on any device. But if you still need your TV Licence, there are other ways to reduce the cost. 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 appropriate evidence, you can apply for a 50% discount on your TV Licence. If neither of these applies, you will have to pay the full rate.
Other ways to save on a TV Licence
TV licences are per household, not per person, so if you live in a house with several people, you don't all need to have one and could all chip in to share the cost. You can share a TV Licence among the whole household if you watch TV in a single shared area, or have a joint tenancy agreement. But if you have separate tenancy agreements and watch TV in your own room, you will need to pay for your own.
You also don't need a TV Licence to watch streaming services (apart from live events on streaming), such as Netflix and Disney Plus, on-demand TV through services like All 4 and Amazon Prime Video, videos on websites such as YouTube, or DVDs and Blu-rays. So if you are happy to stick to any of these and not watch or record any live TV or BBC iPlayer, you can save £180 per year. But if you do watch or record live TV without a TV Licence, you can be issued a fine of up to £1,000.
