BBC fee hike confirmed: do you need a TV licence?

(Image credit: Getty Images/Creative Images Lab)

Households are set for another bill increase in April, as the TV licence fee gies up.

The Department for Media, Culture and Sport has confirmed that the annual cost of a TV licence will rise from £174.50 to £180 from 1 April 2026.

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"The BBC shouldn't be competing with global streamers, it should be the antidote to them. We need a funding model that isn't a regressive flat tax on the poor, likely progressive taxation, but that cash must come with a mandate: cut the middle-management bloat and fund writers who actually have something to say. Save the BBC, but make it worth saving.”

What is a TV licence?

A TV licence is legally required in the UK to watch or record live TV on any service such as soaps and sport.

It isn’t just for watching shows on TV though and a licence is also required if you are viewing recorded programmes on an app through your smartphone such as BBC iPlayer.

The money is also used to fund BBC services.

How much does a TV licence cost?

A TV licence currently costs £174.50 per year but will rise to £180 in April.

The cost of a black and white TV licence will rise from £50.50 per year to £60.50.

A standard TV Licence costs £174.50 and a black and white licence costs £58.50.

You could be prosecuted if you are found to be watching, recording or downloading programmes illegally, with a maximum penalty of £1,000 plus any legal costs.

The government said the inflation-linked increase, an extra 46p per month, will help keep the BBC on a “stable financial footing.”

What does the licence fee cover?

A TV licence covers any programme you watch or record as it’s being shown on any channel, pay TV service or streaming service.

It helps fund the BBC but is also required to watch pay TV services such as Sky and Virgin Media.

You don’t need a TV licence if you only watch programmes on a streaming service such as Netflix, Disney+ or YouTube.

But you could get caught out for example if you watch a live football match shown on YouTube or Disney+.

If you never watch BBC programmes as they are shown and only use streaming services such as Netflix and Disney+ you could argue that you don’t need a TV license but you may need to prove this.

A cost of £180 per year means paying £15 per month.

This makes a licence fee more expensive than a service such as Netflix and Disney+ that start from £5.99 per month.

However, it is not just the TV channels that you get with the BBC.

The funding also covers services such as news, websites and radio, which some could argue makes it value for money.

Who needs to pay the TV licence fee?

If you watch live or recorded TV then you technically need to pay the TV licence.

Students living away from home such as in halls will need a separate licence if watching on a television but otherwise may be covered by their parent’s if they only use a device such as a laptop or smartphone, while tenants need to get one for a rental property.

If you never watch BBC programmes as they are shown and only use streaming services such as Netflix and Disney+ you could argue that you don’t need a TV license but you may need to prove this.

Colette Mason, consultant at London-based Clever Clogs AI, said the BBC looks “expensive and inefficient”.

She said: "If you judge the BBC by Netflix standards, it will always look expensive and inefficient. If you judge it by democratic standards, trusted news, national education and events, cultural memory, it starts to look like a wider role than pure entertainment. That said, trust isn’t a blank cheque.

“When households are under pressure, the BBC has to justify not just its reach, but its judgement. Scale is not the same as value, and being widely used is not the same as being widely respected. Once people stop believing an institution is for them, affordability becomes irrelevant, they simply disengage.”

Who can get a free TV licence?

There are ways to get a discounted or free TV licence.

People over age 74 and claiming pension credit don’t have to pay, while those living in care homes with a TV in their room can get a reduced fee of £7.50.

If you are blind then you can apply to pay half of the licence fee, while there is also a reduced rate for a black and white TV.

What happens if you can't afford a TV licence?

There is no support for people on universal credit if they can’t pay the TV licence.

TV Licensing, which collects payments, lets users spread the cost by paying annually, quarterly or by monthly direct debit.

There is also a Simple Payment Plan licence that people may be eligible for if they have been visited by a TV Licensing Enquiry Officer to check if they need a licence, have previously held a licence that was cancelled within the past six months because of missed payments or are experiencing financial difficulties and are referred by a not-for-profit money advice organisation.

This lets people pay on a fortnightly or monthly basis.

Alternatively, there is a payment card that lets you pay weekly and fortnightly or monthly from £6.50.

Marc Shoffman is an award-winning freelance journalist specialising in business, personal finance and property. His work has appeared in print and online publications ranging from FT Business to The Times, Mail on Sunday and the i newspaper. He also co-presents the In For A Penny financial planning podcast.