New UK TV Licence Fee 2026: The UK government has confirmed that the TV licence fee will increase to £180 per year from 1 April 2026, following the funding formula agreed under the 2022 Licence Fee Settlement.
The rise is linked to inflation and is designed to provide the BBC with stable funding while continuing support schemes for low-income households.
New UK TV Licence Fee 2026 From April 2026
From 1 April 2026, the annual fee for a standard colour TV licence will be:
- £180 per year
- Up from £174.50
- Increase of £5.50 annually
- Equivalent to about 46p extra per month
The price adjustment follows the government’s methodology of increasing the licence fee in line with the Consumer Price Index (CPI) inflation measure until the end of the current BBC Charter period.
Black and White Licence Cost 2026
For households using black and white television sets:
- New annual fee: £60.50 for 2026/27
Why the UK TV Licence Fee Is Increasing?
According to the government settlement framework:
- The New UK TV Licence Fee increase supports the BBC’s financial stability.
- It ensures the broadcaster can continue delivering its Mission and Public Purposes.
- Funding helps sustain UK journalism, entertainment, education, and creative industries.
The BBC remains the UK’s most widely used media organisation, with 94% of UK adults using BBC services each month.
CPI-Linked Increases Until 2027
The New UK TV Licence Fee 2026 settlement sets out that:
- Annual increases will follow CPI inflation.
- This applies until the end of the current Royal Charter period.
Key timeline:
- Charter period: 1 January 2017 – 31 December 2027
- CPI-linked rise also planned for April 2027 (final year of current settlement).
- Free TV Licence: Who Still Qualifies?
- Despite the price increase, free licences remain available for eligible households.
- You qualify if:
- You are aged 75 or over, AND
- You receive Pension Credit
- The free licence covers everyone living at the same address.
Discounted TV Licence Schemes
1. Blind or Severely Sight-Impaired
- 50% licence fee reduction
2. Care Home & Sheltered Housing Residents
Eligible residents may receive:
- Reduced-cost licence fees
Simple Payment Plan Support
To ease cost pressures, the government continues to support the Simple Payment Plan, allowing households to spread payments.
Features:
- Smaller instalments instead of one annual payment
- Budget-friendly scheduling
- Expanded eligibility since 2024
Uptake increased by over 10% as of February 2025, showing rising demand for flexible payment options.
Government Position on Household Costs
Officials acknowledge ongoing financial pressures and state that the funding model aims to remain:
- Sustainable
- Fair
- Affordable for licence fee payers
Support schemes — including free licences and instalment plans — are intended to offset affordability concerns.
BBC Funding & Future Review
The licence fee rise comes alongside the ongoing BBC Charter Review Green Paper consultation, examining long-term funding options.
The review will assess:
- Sustainable funding models
- Public trust and editorial standards
- Value for money
- Economic impact across UK regions
BBC Expansion & Youth Content Initiatives
The BBC has recently launched initiatives to reach younger audiences and families, including:
- New content partnership with YouTube
- Launch of CBeebies Parenting YouTube channel
- Six themed CBBC content channels
- Storytelling collaborations with the British Library
UK Young Professionals Scheme 2026: Eligibility, Application & Visa Fees for Indians
These projects aim to expand public service broadcasting into digital platforms.
Impact on Welsh Broadcaster S4C
S4C — funded entirely through the licence fee — will also benefit from the increase.
- Expected funding: ~£100 million in 2026/27
- Supports Welsh language media and creative industries growth.
What the Licence Fee Pays For
The licence fee funds:
- BBC TV channels
- BBC Radio
- BBC News
- iPlayer streaming
- Educational programming
- Regional and local content
It also supports jobs, production companies, and the UK creative economy.
Key 2026 TV Licence Changes at a Glance
| Category | 2025 Fee | 2026 Fee |
|---|---|---|
| Colour Licence | £174.50 | £180 |
| Increase | — | +£5.50 |
| Monthly Impact | — | +46p |
| Black & White | £57 | £60.50 |
| Free Licence | 75+ on Pension Credit | Continues |
Common Myths About Free TV Licence
People believe that all those above 75 years of age receive it free. That’s not true since 2020. Pension Credit is key. Some say that over-60s or 65+ is free – this is not substantiated.
There is no need to licence streaming Netflix or ITVX catch-up unless live. But BBC iPlayer always does. Do not cancel without enquiring.
Penalties for Not Having a TV Licence
Watching live TV or BBC iPlayer without a licence can lead to:
- Investigation
- Prosecution
- Fines up to £1,000 (in most cases)
This applies even if you stream live broadcasts online.
For More Info check official site >>>https://www.gov.uk/