Cost of TV licence to rise to £180 from April 2026 under inflation-linked settlement

The cost of a UK TV licence will increase to £180 a year from 1 April 2026, the Government has confirmed, in line with inflation and the terms of the existing BBC funding settlement.

The £5.50 rise – equivalent to an extra 46p a month – follows the methodology set out in the 2022 Licence Fee Settlement, which links annual increases to the Consumer Price Index (CPI) until the end of the current BBC Charter period in 2027.

Ministers said the increase is intended to provide the BBC with a stable financial footing, allowing it to continue delivering public service broadcasting while supporting the wider creative industries across the UK.

Inflation-linked rise confirmed

The Department for Culture, Media and Sport (DCMS) said the uplift reflects a 3.14% annualised average CPI rate, calculated from October to September, as specified in the funding agreement.

From April 2026:

• The annual cost of a colour TV licence will rise to £180

• A black and white licence will cost £60.50

• The licence fee will also rise again in April 2027, the final year of the current Royal Charter

The Government said the increase would help ensure the BBC remains financially stable, enabling it to continue delivering its Mission and Public Purposes.

The BBC remains the UK’s most widely used and trusted news outlet, with 94% of UK adults using BBC services each month last year, and continues to be the country’s number one media brand.

Cost of living pressures acknowledged

While confirming the rise, ministers acknowledged ongoing financial pressures on households and said support would remain in place for those struggling to pay.

The Government has committed to retaining the licence fee for the remainder of the current Charter period and says it is working to ensure the funding model remains “sustainable, fair and affordable”.

Measures to support licence fee payers include:

• Continued availability of the Simple Payment Plan, allowing households to spread payments through smaller instalments

• Free TV licences for over-75s on Pension Credit

• Reduced fees for people living in care homes and for blind or severely sight-impaired individuals

Support through the Simple Payment Plan was expanded in 2024, with uptake rising by more than 10 per cent by February 2025.

BBC Charter Review under way

The licence fee announcement comes alongside the ongoing BBC Charter Review, with a Green Paper consultation currently seeking views on options for the BBC’s future funding model beyond 2027.

The review aims to ensure the BBC is sustainably funded, continues to deliver value for money, maintains impartial editorial standards and contributes to economic growth, opportunity and job creation across the UK.

Focus on younger audiences and families

The Government also highlighted recent BBC initiatives designed to reach younger audiences and families in the digital spaces they increasingly use.

These include:

• A new content partnership with YouTube

• The launch of a CBeebies Parenting YouTube channel later this year

• Six themed YouTube channels featuring content from CBBC shows

• A partnership with the British Library to deliver storytelling sessions for pre-school children and parents at library events across the UK

These projects are intended to extend the reach of trusted public service content while supporting literacy, learning and family engagement.

Looking ahead

The current BBC Royal Charter began on 1 January 2017 and runs until 31 December 2027. The 2027 licence fee increase will be the final one under the existing funding settlement, with decisions on the BBC’s long-term funding model to follow the conclusion of the Charter Review.