TV licence fee to rise by £5.50 to £180 from April

The cost of a TV licence is to rise by £5.50 to £180 from 1 April, the government has announced.

The fee pays for BBC shows and services, and its cost increases in line with inflation every year until 2027, following an agreement made in 2022.

A TV licence currently costs £174.50. It increased by £5 last year, and £10.50 in 2024. Prior to that, it had been frozen for two years.

The government recently launched a consultation to ask the public what they think the next era of the BBC should look like, ahead of its charter renewal at the end of 2027.

When it launched the green paper, the government said it was "keeping an open mind about the future of BBC funding", adding: "We have not yet identified a preferred model."

Options include the current licence fee potentially being replaced with a different set of rates depending on which of the broadcaster's services people use.

An advertising or subscription model is also suggested in the consultation document, which could replace the current system that sees all households pay a flat fee.

A BBC spokesman said: "As the green paper states, the BBC will only be able to deliver for the public if it has a sustainable long-term funding model in place, and that means reform.

"We recognise the cost-of-living pressures on the UK public, so we are exploring all options for funding the BBC so that we can provide great value to audiences while also being fairer, more modern, and more sustainable."

A spokesman for the Department for Culture, Media and Sport (DCMS) 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."

It added: "Free licences remain available for over-75s on pension credit, with reduced fees for care home residents and blind individuals."

The government calculates the licence fee increase by using an annual inflation rate rather than a monthly one, which has been used in some previous years.

The fee applies to UK households if they download or watch any BBC shows on iPlayer, watch or stream shows live on any other online TV service, or watch or record programmes as they're being shown on any TV channel.

The rules apply to any device, including TVs, laptops, phones and tablets.

The annual cost of a black-and-white TV licence will also rise by £2 from £58.50 to £60.50 for the new financial year.