- TV licence fee to rise in line with inflation to provide the
BBC with stable financial footing to deliver for audiences and
support the wider creative industries
- The government continues the Charter Review Green Paper
public consultation on options for BBC future funding
- Support for households in severe financial difficulty is
available and free licences for over-75s on Pension Credit
The increase follows the methodology of calculating the licence
fee in line with the consumer price index (CPI) until the end of
the BBC Charter Period.
This means the cost of an annual colour TV licence will rise by
£5.50, or the equivalent of an extra 46p a month.
The increase in the cost of the TV licence will help keep the BBC
on a stable financial footing, enabling it to continue to deliver
on its Mission and Public Purposes. The BBC is the UK's number
one media brand, with 94% of UK adults using the BBC each month
last year and it remains the UK's most widely used and trusted
news outlet.
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.
This comes alongside the ongoing Charter Review, which will
ensure the BBC is sustainably funded to provide value for licence
fee payers, commands the public's trust with impartial editorial
standards and drives growth, opportunity and good jobs across the
country.
The BBC has recently announced a series of initiatives with the
aim of bringing trusted public service content to more young
people and families where they are. This includes a new content
partnership with YouTube, with a CBeebies Parenting YouTube
channel launching later this year, as well as six themed channels
featuring content from CBBC shows. The BBC is also partnering
with the British Library to provide storytelling for
pre-schoolers and their parents at library events across the UK.
S4C, which receives all its public funding from the licence fee,
will also see its revenue increase proportionately, receiving
approximately £100 million in 2026/27 to support the growth of
the Welsh creative industries.
ENDSNotes to Editors
- The current BBC Charter began on 1 January 2017 and ends on
31 December 2027.
- The annualised average of CPI from October to September has
been used to calculate a 3.14% uplift to the licence fee.
- The annual cost of a black and white TV licence will be
£60.50 for 2026/27.
- The licence fee will also rise in line with CPI inflation in
April 2027. This will be the final year of the current Royal
Charter and funding settlement.
- Support through the Simple
Payment Plan was expanded to more households in 2024.
Uptake rose by more than 10 per cent as of February 2025.
