From April, the annual fee will increase by £5.50 to £180, the Department for Culture, Media and Sport (DCMS) confirmed earlier this year.
This rise, which comes in line with inflation, is part of the 2022 Licence Fee Settlement and will also apply to future increases, with the fee set to rise again in line with CPI inflation in April 2027.
A DCMS statement said: “The Government recognises the financial pressures on households and is committed to ensuring the BBC’s funding model is sustainable, fair and affordable.
“The Government has committed to the licence fee for the remainder of this charter period.
“To support the public with the cost of the TV licence, we will also continue to support the simple payment plan to spread payments through smaller instalments.
“Free licences remain available for over-75s on pension credit, with reduced fees for care home residents and blind individuals.”
The TV licence, the main funding source for the BBC, is legally required to watch or record live television in the UK and to use BBC iPlayer.
The cost of a black and white TV licence will also rise from £58.50 to £60.50 for 2026/27.
The increase coincides with ongoing discussions about the BBC’s future funding, as the Government’s Charter Review Green Paper public consultation remains open.
The Welsh-language channel S4C, which receives all its public funding from the licence fee, will see its revenue increase proportionately under the new rate.
It is expected to receive about £100 million in 2026/27, which the DCMS says will “support the growth of the Welsh creative industries”.
Separately, reports last week suggested the BBC is considering new ways to identify unlicensed households through its iPlayer service.
This could involve linking up to 40 million online BBC accounts to home addresses to identify unlicensed users.
A BBC spokesperson said: “The licence fee ensures the BBC has the financial stability it needs to deliver for audiences and support the creative industries across the UK.
“It funds the full range of BBC services and helps us deliver trusted news, the best homegrown storytelling, and unmissable content that brings people together.
“The Government is currently considering the BBC’s next Royal Charter and future funding arrangements beyond 2027.
“We welcome this debate and have been clear we want reform so we can continue to deliver a public service BBC that is independent, sustainably funded for the long-term, and meets audience needs for generations to come.”
Am I eligible for a free TV Licence?
For those of us aged 75 or over who are in receipt of Pension Credit, the TV Licence can be obtained for free.
Guidance from TV Licensing says: “Free TV Licences are only available if you’re 75 or over and you, or your partner living at the same address, are receiving Pension Credit.
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“If you think you’re eligible for a free licence but can’t apply online, please call 0300 790 6117* and speak to one of our advisors to request an application form (our lines are open between 8.30am and 6.30pm, from Monday to Friday).
“Once we’ve received your application it may take a few weeks to process. If there are any problems we’ll write to let you know. We may also call you if you have given us your phone number.
“There are separate arrangements in place for over 75s on the Isle of Man, the Bailiwick of Jersey and the Bailiwick of Guernsey.”
