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TV Licence 2026: PS180 Fee, Who Needs One, Exemptions, and What the BBC Charter Review Could Change

The UK TV licence rose to PS180 from April 2026. The BBC Royal Charter expires in 2027, with a government review examining alternative funding models. This guide covers who needs a licence, current exemptions, and what could change from 2028.

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Chandraketu Tripathi
Finance Editor, Kaeltripton
Published 20 Jun 2026
Last reviewed 20 Jun 2026
✓ Fact-checked
TV Licence 2026: PS180 Fee, Who Needs One, Exemptions, and What the BBC Charter Review Could Change

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Quick Answer

2026 feePS180 per year from 1 April 2026 (up PS5.50 from PS174.50)
Why it roseCPI-linked increases agreed in 2022 run until end of BBC Charter in 2027
Who needs oneAny household watching live TV on any platform or using BBC iPlayer
ExemptionsOver-75s on Pension Credit (free), blind/visually impaired (50% discount), eligible care home residents
Charter ReviewLaunched December 2025 - White Paper expected late 2026, new Charter from 2028
Funding options under reviewDifferential rates, subscription models, concessions reform - no preferred model announced

Last reviewed: 20 June 2026 - Kael Tripton Editorial

The 2026 licence fee rise

The UK television licence fee increased to PS180 per year from 1 April 2026. The rise of PS5.50 (approximately 3.1%) was applied in line with the Consumer Prices Index (CPI), following the funding formula agreed between the government and the BBC in 2022. That agreement runs until the end of the current BBC Royal Charter in December 2027.

The fee had been PS174.50 in 2025 (following a PS5 increase from 2024) and PS164 in 2024 (following a PS10.50 rise). The 2022 agreement followed a two-year freeze at PS159.

Who needs a TV licence?

A TV licence is required under Part 4 of the Communications Act 2003 to:

  • Watch or record live television on any channel, on any device, including smartphones, tablets, laptops, and smart TVs
  • Download or watch BBC programmes on BBC iPlayer (this requirement was introduced in 2016)

A licence is not required to watch on-demand content from non-BBC providers such as Netflix, ITVX (non-live), Channel 4 streaming, or YouTube - provided live television is not being watched simultaneously.

Enforcement is the responsibility of TV Licensing, which operates on behalf of the BBC. Non-payment can lead to prosecution and a court fine of up to PS1,000.

Concessions and exemptions

The following concessions apply as at 2026:

  • Over-75s receiving Pension Credit: Free television licence. This concession, which was previously universal for over-75s, was narrowed in 2020 to Pension Credit recipients only.
  • Blind and severely sight-impaired: 50% discount on the standard licence fee.
  • Care home residents: A reduced-rate concessionary licence applies to qualifying residential care settings.
  • Simple Payment Plan: DCMS confirmed continuation of the plan allowing households to spread payment in instalments rather than paying annually upfront.

The BBC Charter Review

The UK government formally launched the BBC Royal Charter Review on 16 December 2025. The Charter is the constitutional framework that defines the BBC's remit, governance, and funding, and the current one expires at the end of December 2027. A Green Paper setting out options for the BBC's future was published alongside the launch, with a public consultation that closed in March 2026. A White Paper is expected later in 2026.

Culture Secretary Lisa Nandy stated the government is keeping an open mind on future funding, adding: "We have not yet identified a preferred model." Options set out in the Green Paper include: reforming the process for determining the licence fee level; introducing differential rates for different user groups; updating concessions and affordability support; and exploring subscription or household levy models.

The government has stated it does not plan to remove existing concessions or revisit the over-75s policy during the current Charter period.

iPlayer enforcement developments

The BBC is developing a system to link online BBC accounts to home addresses, which would give TV Licensing a dataset for targeting enforcement against households using iPlayer without a licence. The proposal is under development and has not been formally implemented as of June 2026.

Households that do not pay

Official estimates indicate that approximately 12.5% of households that require a licence are not paying. The shrinking paying base creates structural pressure on the licence fee model, which relies on near-universal compliance across approximately 26 million UK households.

Disclaimer: This article is for informational purposes only and does not constitute financial, legal or professional advice. Kael Tripton Ltd is an independent editorial publisher. Always verify details with the relevant official source before acting.
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Editorial Disclaimer

The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA.

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Chandraketu Tripathi
Finance Editor · Kaeltripton.com
Chandraketu (CK) Tripathi, founder and lead editor of Kael Tripton. 22 years in finance and marketing across 23 markets. Writes on UK personal finance, tax, mortgages, insurance, energy, and investing. Sources: HMRC, FCA, Ofgem, BoE, ONS.

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