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The TV licence fee is to increase from £174.50 to £180 a year from 1 April, the Department for Culture, Media and Sport (DCMS) has said.
The DCMS said the £5.50 increase in the fee, which is the predominant method of funding for the BBC, would give the corporation a “stable financial footing to deliver for audiences and support the wider creative industries”.
The cost was rising “in line with inflation” as required by the 2022 licence fee settlement, the department said, adding the fee would also rise again in line with CPI inflation in April 2027.
A DCMS statement said: “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.”
The annual cost of a black and white TV licence is also going up, by £2 from £58.50 to £60.50, for 2026-27.
It comes as the government continues the charter review green paper and public consultation on options for BBC future funding.
The Welsh language channel S4C, which receives all its public funding from the licence fee, will be allocated about £100m in 2026-27, which the DCMS says will “support the growth of the Welsh creative industries”.
Reports last week suggested the BBC was working on ways to use its iPlayer streaming service to find households that have not paid for a TV licence. The move could result in up to 40m online BBC accounts being linked with home addresses for the first time.
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.”
