How Much is a UK Television Licence?
The UK television licence fee is currently £159 per year, or £53.50 for black and white televisions. This fee funds BBC programming and services, encompassing television, radio, the BBC website, podcasts, iPlayer, and various apps. The fee will increase to £169.50 on April 1st, reflecting a 6.6% rise based on the September 2023 inflation rate.
In 2023, the BBC collected £3.74 billion from licence fees, representing approximately 65% of its total £5.73 billion income. The remaining revenue is generated through commercial ventures, grants, royalties, and rental income. If the licence fee had kept pace with annual inflation over the past decade, the BBC would have received an additional £1.16 billion in 2023.
The licence fee is mandated by law for every UK household, with certain exemptions, if they watch or record live television broadcasts on any channel, watch live programs on online TV services (e.g., Channel 4, YouTube, Amazon Prime Video), or download or watch BBC programs on iPlayer. This applies to any device used for viewing, including TVs, computers, mobile phones, tablets, and set-top boxes. A licence is not required for watching non-live programs or clips on streaming platforms like Netflix or YouTube if you don’t use BBC iPlayer.
The BBC’s Royal Charter stipulates its mission to “act in the public interest” by delivering impartial, high-quality, and distinctive content that informs, educates, and entertains all licence fee payers. This commitment to public service broadcasting is a core principle underpinning the licence fee.
The licence fee’s flat-rate structure has drawn criticism, as the poorest households pay the same as the wealthiest. Its relevance in a media landscape dominated by advertising-funded channels, online content platforms like YouTube, and subscription services like Netflix and Now TV has also been questioned. Concerns have also been raised about the criminalization of non-payment.
The licence fee is guaranteed until December 31, 2027. However, the BBC is actively exploring potential reforms for the post-2028 era. This includes examining its scope, making it more progressive, and ensuring fair and proportionate enforcement. A public consultation will be launched to gather input on the future of the organization and its funding. Alternative funding models being considered include a tax on broadband connections, a government grant, partial advertising funding, and a subscription model.
Over-75s previously received free TV licences, but this benefit is now limited to households receiving Pension Credit. Registered blind individuals are eligible for a 50% discount. In 2022-23, the BBC funded 947,000 free licences. Those facing financial hardship can utilize the Simple Payment Plan to spread the cost over 12 months. Non-payment can lead to court action and fines, although imprisonment is only possible for failure to pay the resulting fine. In 2022, there were 40,220 convictions for licence fee evasion, with an average fine of £202. 90% of households requiring a licence currently have one.
