TV Licensing has confirmed that households paying their licence fee via quarterly direct debit incur an additional £5 charge per year. However, this surcharge can be avoided by choosing alternative payment methods such as monthly or annual direct debit.
Current Licence Fees
As of April 1, 2026, the annual cost for a colour TV Licence is £180, while a black-and-white licence costs £60.50. The fee is set by Parliament and must be paid by anyone watching, recording, or downloading live TV or BBC iPlayer.
Why the £5 Charge Exists
TV Licensing explains that unlike utility bills paid in arrears, the TV Licence fee is charged annually in advance. The quarterly direct debit scheme allows payment in arrears, which incurs a £5 annual charge (£1.25 per quarter) prescribed by Parliament under the Communications (Television Licensing) Regulations 2004 (as amended).
TV Licensing states: "People are advised of the charge whenever they choose this payment option, and it is outlined in the payment plan accompanying each new licence. If people would prefer not to pay this, then there are other payment options, including annual and monthly direct debit."
Payment Options to Avoid the Fee
Households can choose from three main payment methods:
- Pay monthly – from £15 per month. The first licence is typically spread over six months at around £30 per month, then £15 monthly thereafter.
- Pay quarterly – from £46.25 per quarter, including the £1.25 quarterly charge (£5 annual total).
- Pay yearly – £180 in a single annual payment, with no extra charge.
Monthly and yearly direct debits do not incur the £5 surcharge, as they are paid in advance.
Enforcement and Penalties
TV Licensing maintains a database of licensed and unlicensed addresses and visits properties believed to be using TV without a valid licence. Failure to hold a licence can lead to prosecution, with a maximum fine of £1,000 plus legal costs and compensation. In Guernsey, the maximum fine is £2,000.
