The annual cost of a TV licence will increase to £180 from 1 April 2026, following an inflation-linked rise set out in the Government’s 2022 Licence Fee Settlement.
The change means the price of a colour licence will rise by £5.50, equivalent to around 46 pence per month, with the increase calculated using the consumer price index and applied each year until the end of the current BBC Charter period.
The Government said the approach is intended to provide a stable financial footing for the BBC while recognising wider pressures on household finances. Ministers have confirmed the licence fee model will remain in place for the rest of the Charter period and that payment support options, including the Simple Payment Plan which allows instalments, will continue. Free licences remain available to households with someone aged over 75 who receives Pension Credit, alongside reduced fees for care home residents and blind people.
Alongside the price rise, a public consultation is continuing through the Charter Review Green Paper, examining options for how the BBC may be funded in the future. The review will consider long-term sustainability, public trust and value for licence fee payers.
The BBC has also outlined plans to expand how audiences access its content, including a new partnership with YouTube, a CBeebies Parenting YouTube channel launching later this year and a set of themed channels featuring CBBC programming. It is also working with the British Library to run storytelling events for young children and families at libraries across the UK.
S4C, which is funded entirely through the licence fee, will see its funding rise proportionately, receiving about £100 million in 2026/27 to support the Welsh creative sector.
The licence fee applies to households watching or recording live television or using BBC iPlayer. The Government says maintaining the inflation-linked settlement until the Charter ends is intended to balance affordability for viewers with predictable funding for the broadcaster and the wider creative industries it supports.
