THE increase follows the methodology of calculating the licence fee in line with the consumer price index (CPI) until the end of the BBC Charter Period.

This means the cost of an annual colour TV licence will rise by £5.50, or the equivalent of an extra 46p a month. 

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 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.

This comes alongside the ongoing Charter Review, which will ensure the BBC is sustainably funded to provide value for licence fee payers, commands the public’s trust with impartial editorial standards and drives growth, opportunity and good jobs across the country.

The BBC has recently announced a series of initiatives with the aim of bringing trusted public service content to more young people and families where they are. This includes a new content partnership with YouTube, with a CBeebies Parenting YouTube channel launching later this year, as well as six themed channels featuring content from CBBC shows. The BBC is also partnering with the British Library to provide storytelling for pre-schoolers and their parents at library events across the UK.

S4C, which receives all its public funding from the licence fee, will also see its revenue increase proportionately, receiving approximately £100 million in 2026/27 to support the growth of the Welsh creative industries.