The TV licence fee will increase to £180 a year from April, the Department for Culture, Media and Sport (DCMS) has confirmed.
Explaining the reasoning behind the £5.50 increase from £174.50, the DCMS said it will give the corporation ‘stable financial footing to deliver for audiences and support the wider creative industries’.
The cost is also said to be rising ‘in line with inflation’, as the department added that the fee will also rise again in line with CPI inflation in April 2027.
The money is used to pay for eight national TV channels plus regional TV services, BBC iPlayer, BBC Sounds, 56 radio stations, the BBC website, BBC World Service and BBC apps.
A DCMS statement said: ‘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 after BBC fans previously rushed to cancel their TV licence before an April price increase last year.
It was previously announced that on April 1 2025, the annual fee would be going up by an extra £5 from £169.50 to £174.50.
Although some viewers weren’t happy about it, it is legally required to have a TV licence if you watch live television on any channel or use BBC iPlayer.
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Alongside the announcement, the annual cost of a black and white TV licence will also rise by £2 from £58.50 to £60.50 for 2026/27.
It comes as the Government continues the Charter Review Green Paper public consultation on options for BBC future funding.
Welsh language channel S4C, which receives all its public funding from the licence fee, will see a revenue increase proportionately, receiving roughly £100 million for this year, which the DCMS says will ‘support the growth of the Welsh creative industries’.
Reports last week suggested that the BBC is working on ways to use its iPlayer streaming service to find households that have not paid for a TV licence.
The move could see up to 40 million online BBC accounts linked with home addresses for the first time to find households that are accessing the BBC without a licence.
A BBC spokesperson said: ‘The licence fee ensures the BBC has the financial stability it needs to deliver for audiences and support the creative industries across the UK.
‘It funds the full range of BBC services and helps us deliver trusted news, the best homegrown storytelling, and unmissable content that brings people together.
‘The Government is currently considering the BBC’s next Royal Charter and future funding arrangements beyond 2027.
‘We welcome this debate and have been clear we want reform so we can continue to deliver a public service BBC that is independent, sustainably funded for the long-term, and meets audience needs for generations to come.’
Shadow culture secretary and Conservative Party MP Nigel Huddleston said in response to the rise: ‘It is increasingly difficult to see how the BBC can justify any rise in the licence fee when serious questions remain over its impartiality and governance.
‘At a time when households are under real financial pressure from Labour’s economic mismanagement, asking people to pay more for a service that is losing trust is simply not credible.
‘Pushing through another increase will only accelerate this decline. Instead of demanding more from struggling families, the BBC should be focusing on getting its house in order.’
Reform UK MP Lee Anderson also added: ‘The BBC has a death wish. With families facing soaring bills and taxes, it is indefensible to demand more money for an institutionally biased BBC.
‘Reform UK would overhaul a national broadcaster that is clearly unsustainable in its current form.’
Further information is available on TV Licensing’s official website.
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