The DCMS said the £5.50 increase in the fee, which is the predominant method of funding for the BBC, would give the corporation “stable financial footing to deliver for audiences and support the wider creative industries”.
Every household in the UK is legally required to have a TV licence in order to watch or record live TV, regardless of what channel it is on.
A TV licence is also required to use BBC iPlayer, regardless of whether or not you are watching live.
The cost is rising “in line with inflation” as required by the 2022 Licence Fee Settlement, the department said, adding the fee will also rise again in line with CPI inflation in April 2027.
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.”
The annual cost of a black and white TV licence will 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 revenue increase proportionately, receiving about £100 million in 2026/27, which the DCMS says will “support the growth of the Welsh creative industries”.
It comes after reports last week suggested 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: “As the Green Paper states, the BBC will only be able to deliver for the public if it has a sustainable long-term funding model in place, and that means reform.
“We recognise the cost-of-living pressures on the UK public, so we are exploring all options for funding the BBC so that we can provide great value to audiences while also being fairer, more modern, and more sustainable.”
Am I eligible for a free TV Licence?
For those of us aged 75 or over who are in receipt of Pension Credit, the TV Licence can be obtained for free.
Guidance from TV Licensing says: “Free TV Licences are only available if you’re 75 or over and you, or your partner living at the same address, are receiving Pension Credit.
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“If you think you’re eligible for a free licence but can’t apply online, please call 0300 790 6117* and speak to one of our advisors to request an application form (our lines are open between 8.30am and 6.30pm, from Monday to Friday).
“Once we’ve received your application it may take a few weeks to process. If there are any problems we’ll write to let you know. We may also call you if you have given us your phone number.
“There are separate arrangements in place for over 75s on the Isle of Man, the Bailiwick of Jersey and the Bailiwick of Guernsey.”
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