TV and Broadband Deals UK: Costs and the TV Licence

How TV and broadband bundles work

A TV and broadband bundle puts two or more services on one bill, usually broadband, a TV package and often a landline. The bundle price is a promotional rate for an initial term, commonly 18 or 24 months. After that term, the price usually rises to a standard rate unless a new deal is agreed. The bundle does not include everything a household pays for television. The TV licence is separate, and so are calls outside any included allowance and any premium channels added later.

Bundles are sold as a single monthly figure, which can make comparison difficult. The figure may include a broadband line, a TV box, and a set of channels. It may exclude the cost of the TV licence, which is £180 a year for a colour licence from 1 April 2026. It may also exclude installation charges, early termination charges if the contract ends early, and the cost of any add-ons. A household comparing bundles needs to look at the total monthly cost across the whole contract, not just the first month.

The services in a bundle are usually delivered over the same connection. Broadband carries the internet, and the TV service may arrive through the same line or through a separate aerial or satellite dish. Some bundles use an internet connection for on-demand and streaming apps, while live channels may come through a traditional broadcast method. The delivery method does not change the licence requirement. A TV licence is needed to watch or record live TV on any channel or service, or to use BBC iPlayer, whichever way the TV package is delivered.

The TV licence is a separate cost

The TV licence is not part of any TV or broadband bundle. It is paid to TV Licensing, not to the broadband or pay TV provider. A colour TV licence costs £180 a year from 1 April 2026, up £5.50. A black and white TV licence costs £60.50 for 2026/27. The licence covers the household address, not the individual services in a bundle. A household with a bundle that includes live TV channels still needs a licence, and so does a household that only uses BBC iPlayer.

The licence requirement applies to live TV on any channel or service, and to recording live TV. It also applies to BBC iPlayer use. This is true whichever way the TV package is delivered, whether by aerial, satellite, cable or an internet connection. A household that only watches on-demand services other than BBC iPlayer, and never watches or records live TV, may not need a licence. The rules are set out by TV Licensing, and households should check their own circumstances.

Because the licence is separate, it does not appear on a bundle bill. A household budgeting for a bundle should add the licence cost on top. For a colour licence from 1 April 2026, that is £180 a year, or about £15 a month if spread evenly. The licence fee is set annually and can change. The 2026/27 colour licence is £180, which is £5.50 more than the previous year. The black and white licence is £60.50 for 2026/27.

Speed and coverage needed for streaming

Streaming needs a stable broadband speed, and the speed needed depends on the number of users and the quality of the video. Standard definition streaming uses less bandwidth than high definition, and high definition uses less than ultra high definition. A household with several people streaming at once needs more speed than a single viewer. The bundle speed should be checked against the number of devices and the number of simultaneous streams. A slow or unstable connection can cause buffering even when the advertised speed looks sufficient.

Coverage varies by area and by technology. Ofcom Connected Nations spring 2026 update, using January 2026 data, reports that full fibre reaches 82% of UK homes, which is 24.9 million of 30.5 million homes. Gigabit-capable broadband reaches 89% of UK homes, which is 27.1 million, up from 87% in July 2025. These figures show that most homes can access high speed connections, but not all. A household in an area without full fibre may have slower options, which can affect streaming quality.

The bundle should be matched to the household's actual use. A single viewer streaming in standard definition needs less speed than a household with multiple 4K streams. The number of connected devices also matters, including phones, tablets, games consoles and smart TVs. A bundle that includes a TV service delivered over the internet will use some of the broadband capacity. Households should check the expected speed at their address, not just the headline speed in the advert. The Ofcom figures give a national picture, but local availability can differ.

Price rises and contract rules

Price rise terms in new contracts are regulated. Since 17 January 2025, Ofcom bans inflation-linked or percentage-based price-rise terms in new phone, broadband and pay TV contracts. Any price rise written into a new contract must be set out in pounds and pence, prominently, at the point of sale. This means a household should see the exact amount of any future rise before signing. The rule applies to new contracts, so older contracts may still contain different terms. Households should check the terms of their own contract.

Contract length and early termination charges are also important. A bundle usually has an initial term, and ending the contract early can trigger an early termination charge. The charge is usually based on the remaining months of the contract. A household that switches before the term ends may have to pay it. The current provider must give switching information including early termination charges when a customer asks to switch. This helps a household work out the true cost of leaving early.

Price rises can also happen at the end of a promotional term. The bundle price may be a discounted rate for the first 18 or 24 months, after which the standard rate applies. The standard rate is often higher. A household should check what the price will be after the initial term, and whether a new contract is needed to keep a lower price. The pounds and pence rule means any contractual rise during the term should be clear at the start. Out of contract rises are a separate matter and should be checked with the provider.

Switching a TV and broadband package

Switching broadband or landline provider between networks is covered by One Touch Switch, which launched on 12 September 2024. Under this process, the customer contacts only the new provider. The new provider manages the switch with the current provider. The current provider must give switching information including early termination charges. This is intended to make switching simpler and to reduce the need for the customer to contact both providers. The process applies to switching between networks, not to every type of switch.

A household switching a bundle should check what is included in the new package and what is left behind. If the old bundle included a TV service, the new package may not include the same channels. If the old bundle included an email address, it may be closed after switching. The TV licence is unaffected by switching, because it is held by the household and not by the provider. A colour licence costs £180 a year from 1 April 2026, and a black and white licence costs £60.50 for 2026/27.

Switching can also involve equipment. A new provider may supply a new router or TV box, and the old equipment may need to be returned. A household should check whether any equipment charges apply. The current provider must give switching information including early termination charges, so the cost of leaving early is known before the switch. A household should also check the new contract's price rise terms, because any rise must be in pounds and pence and shown prominently at the point of sale.

Checklist before choosing a bundle

Before choosing a bundle, a household should list the services it actually uses. This includes broadband, TV channels, on-demand apps and any landline. The list should note whether live TV is watched or recorded, and whether BBC iPlayer is used, because a TV licence is needed for those activities. A colour TV licence costs £180 a year from 1 April 2026, up £5.50, and a black and white licence costs £60.50 for 2026/27. The licence is separate from the bundle and should be added to the budget.

The household should check the broadband speed available at the address and the number of simultaneous streams needed. Ofcom Connected Nations spring 2026 update, using January 2026 data, reports full fibre reaches 82% of UK homes (24.9 million of 30.5 million) and gigabit-capable broadband reaches 89% (27.1 million), up from 87% in July 2025. These figures can help set expectations, but local availability should be checked. The bundle price should be compared over the whole contract term, not just the promotional period.

The contract terms should be checked for price rises, contract length and early termination charges. Since 17 January 2025, Ofcom bans inflation-linked or percentage-based price-rise terms in new phone, broadband and pay TV contracts, and any rise must be in pounds and pence, prominently, at the point of sale. The household should also check what happens at the end of the initial term. If switching is planned, One Touch Switch, launched on 12 September 2024, means the customer contacts only the new provider, and the current provider must give switching information including early termination charges.

Source: GOV.UK.

Related coverage on Kael Tripton: Virgin Media Broadband Deals UK 2026: Cable Network Explained, Sky Broadband Deals UK 2026: What to Know Before Signing Up, How to Switch Broadband UK 2026: One Touch Switch, Exit Fees and Your Rights, What Happens to Your ISP Email Address When You Switch Broadband, Fibre vs full-fibre broadband.

Frequently asked questions

Is the TV licence included in a TV and broadband bundle?

No. The TV licence is separate from any TV or broadband bundle. A colour TV licence costs £180 a year from 1 April 2026, up £5.50. A black and white TV licence costs £60.50 for 2026/27. The licence is paid to TV Licensing, not to the broadband or pay TV provider.

Do I need a TV licence to use BBC iPlayer?

Yes. A TV licence is needed to watch or record live TV on any channel or service, or to use BBC iPlayer, whichever way the TV package is delivered. This applies even if the bundle is delivered over an internet connection rather than an aerial or satellite.

What broadband speed do I need for streaming?

The speed needed depends on the number of viewers, the number of devices and the video quality. Standard definition uses less bandwidth than high definition, and high definition uses less than ultra high definition. A household with several simultaneous streams needs more speed than a single viewer. Check the speed available at your address.

Can my broadband or TV price rise during my contract?

Since 17 January 2025, Ofcom bans inflation-linked or percentage-based price-rise terms in new phone, broadband and pay TV contracts. Any price rise written into a new contract must be set out in pounds and pence, prominently, at the point of sale. Older contracts may have different terms, so check your own contract.

How does One Touch Switch work?

One Touch Switch launched on 12 September 2024 for switching broadband or landline provider between networks. The customer contacts only the new provider. The current provider must give switching information including early termination charges. This is intended to make switching simpler.