The TV licence fee is set to rise from £174.50 to £180 a year from 1 April, the Department for Culture, Media and Sport (DCMS) has confirmed. The £5.50 increase, linked to inflation, is part of the 2022 licence fee settlement and will be followed by another CPI-linked rise in April 2027.
The DCMS stated the increase would provide the BBC with a “stable financial footing to deliver for audiences and support the wider creative industries”. The government also highlighted support measures, including the simple payment plan for spreading costs and free licences for over-75s on pension credit, as well as reduced fees for care home residents and blind individuals.
The annual cost of a black and white TV licence will also rise by £2 to £60.50 for 2026-27. The announcement comes as ministers continue the charter review green paper and public consultation on future funding options for the BBC.
Welsh language channel S4C, which receives all its public funding from the licence fee, will be allocated approximately £100m in 2026-27 to support the growth of the Welsh creative industries. Meanwhile, reports suggest the BBC is exploring ways to use iPlayer to identify households that have not paid for a licence, potentially linking up to 40m online accounts with home addresses.
A BBC spokesperson said the licence fee ensures financial stability and funds trusted news, homegrown storytelling, and unmissable content. They welcomed the debate on future funding, emphasising the need for reform to ensure a sustainable, independent BBC that meets audience needs for generations.
