The TV licence fee is set by the Government and it normally rises every April. It typically increases in line with the previous September rate of Consumer Price Index (CPI) inflation
Levi Winchester Money Editor
08:57, 03 Nov 2025
BBC TV licence price set to rise above £180 next year in new cost of living blow(Image: Maskot via Getty Images)
The price of a TV licence is expected to rise above £180 next year, marking another hit to the cost of living for millions of households. The Government sets the TV licence fee, which typically sees an increase every April in line with the previous September’s Consumer Price Index (CPI) inflation rate.
This year, the September inflation rate was confirmed at 3.8%. Currently, a TV licence costs £174.50 per annum, meaning if it increases by 3.8% next April, the new fee for a colour licence would be just over £181. The exact increase has yet to be confirmed by the Government. Last year saw around 300,000 households stop paying their TV licence fee.
A TV licence is required to legally watch live TV or any content on BBC iPlayer, whether it’s live or catch-up. However, if you only watch shows on catch-up using streaming services other than BBC iPlayer – such as Netflix, Amazon Prime, ITVX, Disney Plus, YouTube, All 4 or My5 – then a TV licence isn’t necessary.
But, if you’re tuning into live shows through these services, a TV licence is needed. Some individuals are eligible for a free or reduced-price TV licence, reports the Mirror. If you’re over 75 and claim Pension Credit, you don’t need to pay for a TV licence. The amount of money you could potentially get back depends on how much time is left on your existing TV licence.
However, if you find that you no longer require your TV licence before it expires, you could be eligible for a refund. For instance, if you’re relocating to a property that already has a TV licence, you may not need yours anymore.
For those residing in residential care or sheltered housing, there’s the possibility of obtaining a concessionary TV licence, which currently stands at £7.50 per room, flat or bungalow. If there’s someone in your household who is blind or severely sight-impaired, you’re entitled to a 50% discount on your TV licence fee.
Students living away from home might also be covered under their parents’ TV licence, but only if they’re watching TV on a device that isn’t connected to the mains, such as a mobile phone, tablet or laptop.
However, if you’re caught viewing TV programmes that necessitate a TV licence without having one, you could face a fine of up to £1,000. In Guernsey, the maximum fine rises to £2,000, plus any legal costs or compensation you may be ordered to pay.
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