TV Licence Fee Set to Rise to £180 from April 2026 Amid BBC Funding Review
The cost of a standard colour television licence is scheduled to increase by £5.50, reaching £180 per year from April 1, 2026. This adjustment, confirmed by the Government, is implemented in accordance with the 2022 Licence Fee Settlement, which mandates that the annual charge rises in line with the Consumer Price Index measure of inflation.
The increase is intended to provide the BBC with a stable financial footing while ministers conduct a comprehensive review of alternative funding models for the broadcaster beyond the expiry of the current Royal Charter in 2027.
Changes to Black-and-White Licences and New iPlayer Enforcement
In a corresponding move, the annual fee for a black-and-white television licence will also rise, from £58.50 to £60.50. Although such sets are now relatively uncommon, this £2 increase preserves the traditional proportional cost difference between colour and monochrome viewing licences.
Simultaneously, the BBC is reportedly developing new technological measures designed to link approximately 40 million online BBC iPlayer accounts to physical residential addresses. This initiative aims to more effectively identify households that are accessing the corporation's streaming services without holding a valid television licence, thereby seeking to reduce evasion rates.
Eligibility for Free and Discounted TV Licences
Despite the overall price rise, several important concessions remain in place for eligible individuals:
- Free TV Licences: Available to individuals aged 75 or over, provided they or their partner are in receipt of Pension Credit. Applications can be made via the TV Licensing website or a dedicated telephone helpline.
- Care Home Discount: Residents living in qualifying care homes or sheltered accommodation can access a heavily discounted licence at a cost of just £7.50 per year.
- Blind or Severely Sight-Impaired: People who are registered as blind or severely sight-impaired are entitled to a 50% reduction on the full annual licence fee.
Future Funding Review and Welsh Broadcasting Support
The Department for Culture, Media and Sport (DCMS) has confirmed that the licence fee will undergo a further inflationary increase in April 2027. This will represent the final adjustment under the current funding settlement before the existing Royal Charter concludes at the end of that year.
A major public consultation on a Government Green Paper concerning the BBC's future funding is now actively underway and is set to close on March 10, 2026. This consultation is exploring potential alternative revenue models, which could include a subscription service or a universal household levy, with the aim of potentially replacing the traditional licence fee system by 2028.
In related funding news, revenue allocated to the Welsh-language channel S4C is set to increase proportionately, reaching approximately £100 million for the 2026/27 period. This enhanced funding is intended to support the Welsh creative sector and ensure the continued sustainability of national public service broadcasting in Wales.
