The BBC TV licence fee is the annual charge that funds the BBC, and in 2026/27 it costs £180 a year for a standard colour licence. You need one by law if you watch or record live television on any channel or service, or if you watch anything on BBC iPlayer — whatever device you use. A black and white licence costs £60.50 a year.

The fee rose by £5.50 on 1 April 2026, from £174.50, and it is due to rise again in line with inflation in April 2027. With the government reviewing how the BBC should be funded once the current Charter ends, the licence fee is back in the headlines — so here is what it is, who has to pay it, and what happens next.

What does the TV licence fee pay for?

The licence fee is the BBC's main source of income, paying for its television channels, radio stations and online services, including BBC News, BBC iPlayer and BBC Sounds. The government says the BBC remains the UK's most widely used and trusted news outlet, with 94% of UK adults using the BBC each month last year.

The fee also funds S4C, the Welsh-language broadcaster, which receives all of its public funding from the licence fee. S4C received approximately £100 million in 2026/27. The fee is set by the government, not by the BBC: the Department for Culture, Media and Sport (DCMS) announced the 2026/27 price in February 2026.

How much is a TV licence in 2026?

From 1 April 2026, the prices are:

• Colour TV licence: £180 a year, up £5.50 from £174.50
• Black and white TV licence: £60.50 a year, up from £58.50

The increase was a 3.14% uplift, calculated from the annualised average of consumer price index (CPI) inflation from October to September, as required by the 2022 Licence Fee Settlement. That settlement links the fee to CPI inflation until the end of the current BBC Charter period. The £5.50 rise works out at about 46p extra a month.

The licence fee will rise in line with CPI inflation again in April 2027. That will be the final year of the current Royal Charter and funding settlement, so the April 2027 figure will be the last one set under the existing arrangements.

Who needs a TV licence — and who does not?

You need a TV licence if you watch or record programmes on any channel as they are broadcast live, or if you watch BBC programmes on iPlayer. That applies on any device: as The Register puts it, a laptop, tablet or phone is no escape hatch if it is showing live broadcasts.

The licence is about what you watch, not the set you own. You do not need a licence simply to own a television: the requirement is triggered by watching or recording live television, or by using BBC iPlayer. Watching on-demand programmes on other streaming services, without live TV and without iPlayer, does not require a licence.

A licence covers everyone in your household at one address, and it is renewed every year. You can spread the cost rather than paying the full £180 in one go, including through the Simple Payment Plan, which the government expanded to more households in 2024 to help people in severe financial difficulty.

Who pays less — or nothing at all?

Not everyone pays the full £180. The main concessions are:

• Free licences for people aged 75 or over who receive Pension Credit.
• A 50% discount for people registered blind or severely sight impaired — £90 a year.
• Reduced fees for some people living in residential care homes.

Support for households in severe financial difficulty is also available through the Simple Payment Plan, which lets people pay in smaller instalments. If you think you qualify for a concession, check with TV Licensing before you pay the full amount.

Why does the fee go up every April?

Under the 2022 Licence Fee Settlement, the fee was frozen for two years and then linked to CPI inflation for the rest of the Charter period. That is why the price now moves each April by an inflation-linked amount rather than by a figure ministers pick freely each year. The government says the rises give the BBC a stable financial footing to deliver for audiences and support the wider creative industries.

The current BBC Charter began on 1 January 2017 and ends on 31 December 2027. The government has committed to the licence fee for the remainder of this Charter period, and it is running a Charter Review Green Paper consultation on the options for funding the BBC in future.

What happens to the licence fee after 2027?

That is the big unanswered question. Ministers have made clear that the licence fee's long-term survival is up for debate, with the funding arrangements to be settled during negotiations for the BBC's next Royal Charter, which begins after 2027. Ideas reported in the debate include reforming the licence fee, changing what it covers, and raising more of the BBC's income commercially.

No final decision has been taken on what replaces the current system. Until the Charter Review concludes, the £180 colour licence remains the fee for 2026/27, with one more inflation-linked rise due in April 2027.

Frequently asked questions

Do I need a TV licence to watch Netflix? Not if that is all you watch. You need a licence only if you watch or record live television on any channel, or use BBC iPlayer. Watching on-demand shows on Netflix alone does not require one.

Can I pay monthly? Yes. You can spread the cost across the year rather than paying £180 at once, and the Simple Payment Plan offers smaller instalments for households in severe financial difficulty.

Do I need a licence if I only watch on my phone? Yes, if you watch live TV or use iPlayer on it. The device makes no difference — the rule follows what you watch, not the screen you watch it on.

Will the fee rise again in 2027? Yes. The government has confirmed the fee will rise in line with CPI inflation in April 2027, the final year of the current Charter. The exact figure will depend on inflation and has not yet been announced.

Sources: GOV.UK — Cost of TV licence fee set for 2026/27 and The Register — BBC raises TV license to £180.