BBC announces licence fee increase to deliver "financial stability it needs"

The BBC licence fee is set to rise by £5.50 to £180 from 1st April 2026 to ensure the corporation has the "financial stability it needs to deliver for audiences and support the creative industries across the UK".

The British government has agreed to a 3.14% increase, calculated in line with the consumer price index. The licence fee has been increasing in line with inflation since 2022 and will continue to do so until the end of the charter period in 2027.

The change, which follows rises of £5 last year and £10.50 in 2024, will cost UK households an extra 46p per month.

All UK households that watch, stream or record live TV on any device, download or watch any shows on BBC iPlayer, or watch shows on any online TV service must pay the fee.

On the increase, 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."

A statement from the Department for Culture, Media & Sport added: "The increase in the cost of the TV licence will help keep the BBC on a stable financial footing, enabling it to continue to deliver on its Mission and Public Purposes. The BBC is the UK’s number one media brand, with 94% of UK adults using the BBC each month last year and it remains the UK’s most widely used and trusted news outlet.

"The government recognises the financial pressures on households and is committed to ensuring the BBC’s funding model is sustainable, fair and affordable."

The licence will remain free for over-75s on pension credit, while reduced fees are still in place for care homes and blind individuals.

With the BBC's Royal Charter set to expire on 31st December 2027, the government launched a review and public consultation late last year.

Ahead of the renewal of the charter, the legal framework that allows the broadcaster to exist and sets out its mission, public purposes and governance, the government indicated in a green paper that it's committed to "future-proofing" the broadcaster but is exploring funding models.

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