The TV licence fee provides the main source of public funding for the BBC and supports television, radio and online services used by audiences across the UK. The fee level is set by government settlement and adjusted using an agreed inflation method during the current Charter period.
The Department for Culture, Media and Sport has confirmed that the TV licence fee will increase to £180 from 1 April 2026 under the inflation-linked formula set out in the 2022 Licence Fee Settlement.
The uplift follows the consumer price index method and applies for the current Charter period. The change is intended to maintain BBC funding levels and support associated creative sector activity, while keeping payment support and concessions in place for eligible households.
Introduction
The government published details of the TV licence fee increase on 6 February 2026, setting out the new rate for the 2026/27 period.
The Department for Culture, Media and Sport said the change follows the agreed settlement model that links the licence fee to inflation during the current BBC Charter period.
Licence Fee Increase Announcement
The Department for Culture, Media and Sport confirmed that the annual cost of a colour TV licence will rise to £180 from 1 April 2026.
The department said the increase follows the 2022 Licence Fee Settlement and applies in line with the agreed inflation-based calculation method.
- New annual colour licence set at £180
- Change takes effect from 1 April 2026
How the New Fee Is Calculated
The government said the licence fee uplift is calculated using the consumer price index measure of inflation, based on the annualised average from October to September.
It stated that this produces a 3.14% uplift for 2026/27 and that the same method will be used until the end of the current Charter period.
Licence Fee Rates and Uplift
| Colour TV licence | £180 annual fee from April 2026 after £5.50 increase |
| Black and white licence | £60.50 annual fee for 2026/27 |
| Inflation uplift | 3.14% based on CPI annualised average |
Impact on Households and Payment Options
The department said the £5.50 annual increase is equal to around 46 pence per month for a colour licence.
It added that the Simple Payment Plan will continue, allowing households to spread payments through smaller instalments to manage costs.
- Monthly impact around 46 pence
- Simple Payment Plan remains available
Concessions and Free Licence Support
The government confirmed that free TV licences remain available for people aged over 75 who receive Pension Credit.
It also stated that reduced fees continue for eligible care home residents and for blind licence holders.
Concession Groups and Support
| Over-75s on Pension Credit | Eligible for a free TV licence |
| Care home residents | Eligible for a reduced fee licence |
| Blind licence holders | Eligible for a reduced fee licence |
BBC Funding Stability and Audience Reach
The department said the inflation-linked rise is intended to keep the BBC on a stable financial footing and support delivery of its Mission and Public Purposes.
It stated that the BBC is the UK’s most widely used and trusted news outlet, with 94% of UK adults using BBC services each month last year.
Charter Review and Future Funding Consultation
The government said the Charter Review Green Paper public consultation on options for the BBC’s future funding is continuing alongside the current settlement period.
It added that the review considers how the BBC can be sustainably funded while delivering value for licence fee payers and maintaining impartial editorial standards.
Ministerial Comments
Department for Culture, Media and Sport said;
“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.”
In a Nutshell
The government has set the TV licence fee at £180 from 1 April 2026 using the agreed inflation-based formula in the current settlement period. The Department for Culture, Media and Sport says payment support and concession schemes will continue for eligible groups. The change sits alongside the ongoing Charter Review consultation on future BBC funding and governance arrangements.
Sources: Department for Culture, Media and Sport.
Prepared by Ivan Alexander Golden, Founder of THX News, an independent news organisation delivering timely insights from global official sources. Combines AI-analysed research with human-edited accuracy and context.
