Millions across the UK are set to face another increase in the cost of a BBC licence, with the annual fee climbing to £180 from April 1, up from the current £174.50. The Department for Culture, Media and Sport confirmed the rise on Friday and said the increase is essential to keep the BBC on a “stable financial footing” and enable it to "continue to deliver on its Mission and Public Purposes."
The rise follows the "Licence Fee Settlement" agreed back in 2022, which linked the licence fee to inflation until at least 2027. At that time, the fee stood at £159 and was expected to remain under £175 by the end of the agreement. However, higher inflation has pushed the cost above that projection, with a previous increase in April 2025 raising it to £174.50.
The BBC collected £3.8 billion from sales of more than 23 million TV licences in 2024/25, but around £550 million is thought to have been lost through evasion.
The future of this funding model is under increasing scrutiny. Traditional TV viewing is declining as audiences shift to streaming platforms like Netflix and Amazon Prime Video, prompting questions about whether the licence fee remains sustainable.
However, the DCMS stated that the BBC is the UK’s number one media brand, with 94% of UK adults using the BBC each month in 2025.
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You need a TV licence if you watch or stream live TV on any channel, or if you use BBC iPlayer to watch or download programmes.
You do not need a licence if you only watch on-demand services such as Netflix, Prime Video, Disney+, ITVX, All 4 or My5, as long as you are not watching live broadcasts. A licence is also not required for DVDs, Blu-ray discs, downloaded programmes, or non-live YouTube videos.
The government said that support schemes are still available for those struggling financially, including:
