A standard TV Licence costs £174.50 per year (Image: Getty)
Last year saw a hike in the TV Licence fee for many households, with the Government increasing the cost to £174.50 in April 2025. This annual charge is typically mandatory for businesses and households that watch live television, including events on platforms like Netflix and YouTube, as well as content on BBC iPlayer.
While only one licence is needed per household, the rules vary slightly for those who own a second home or caravan. In some instances, you may need to acquire an additional TV Licence for that address, potentially doubling the cost to £349.
Extra TV Licences are especially required if you plan to watch TV channels on any service, live TV on streaming platforms, and BBC iPlayer from a secondary property. Under the official TV Licensing online guidance, this applies to any device used in a house, flat, bungalow, or cottage.
The sole exception is if you solely use devices powered by their internal batteries, meaning they aren’t connected to an aerial or plugged into the mains. In such cases, your primary home’s TV Licence will cover you.
However, entirely different rules apply to those residing in a touring caravan, static caravan, boat, mobile home or moveable chalet. Official guidelines state that your main home’s TV Licence should cover you, unless someone is watching live broadcasts or using BBC iPlayer simultaneously at your main licensed address.
In this instance, you’ll need to fill out a declaration form, which should only take a few minutes. These forms are available in both Welsh and English.
A TV Licence is required to watch live channels and BBC iPlayer content (Image: Getty)
READ MORE: Nationwide £2,500 rule for all customers
Official TV licensing guidance adds: “You could be prosecuted if we find that you have been watching, recording or downloading programmes illegally. The maximum penalty is a £1,000 fine plus any legal costs and/or compensation you may be ordered to pay.
“A standard TV Licence costs £174.50 and a black and white licence costs £58.50.” For more information, click here.
Why has the licence fee increased?
The Secretary of State confirmed a 2.9% increase in the licence fee for 2024, taking effect from April 1, 2025, in line with annual CPI inflation. This amounts to a daily rise of slightly over 1p and marks just the second fee increase since April 1, 2021.
This change has pushed the annual colour licence fee to £174.50, whilst the black-and-white licence now stands at £58.50 per year. Going forward, licence fee increases will be linked to CPI inflation for the next four years, concluding in 2027.
What does a TV Licence cover?
The TV Licensing website explains that your payment covers four key things. This includes:
All TV channels – like BBC, ITV, Channel 4, U&Dave and international channelsPay TV services – like Sky, Virgin Media and EE TVLive TV on streaming services – like YouTube, Netflix, and Amazon Prime VideoEverything on BBC iPlayer
This covers watching, recording, and downloading on any device.
For the latest money-saving tips, shopping and consumer news, go to the new Everything Money website