Do I Have to Pay My Television Licence?

The TV licence fee in the UK is currently £159 per year, or £53.50 for black and white televisions. This fee funds BBC programming and services, including television and radio broadcasts, the BBC website, podcasts, iPlayer, and various apps. There were 24.4 million active licences in the year leading up to March 2023.

This fee will increase by 6.6% to £169.50 on April 1st, reflecting the September 2023 inflation rate. The fee was frozen for the two years prior. In 2023, the BBC generated £3.74 billion from the licence fee, representing approximately 65% of its total £5.73 billion income.

Had the licence fee kept pace with annual inflation over the past decade, the BBC would have received an additional £1.16 billion in 2023. The remaining income is derived from commercial ventures and other sources like grants, royalties, and rental income. In return for the licence fee, the BBC is obligated to provide public service broadcasting.

According to the Royal Charter, the BBC’s mission is to “act in the public interest” by delivering impartial, high-quality, and distinctive content that informs, educates, and entertains all licence fee payers.

The licence fee is a flat-rate payment, meaning all households pay the same amount regardless of income. This has drawn criticism, as have the changing media landscape and the BBC’s role within it. Introduced in 1946 when the BBC was the sole UK broadcaster, the fee now supports a corporation competing with advertising-funded channels, online platforms like YouTube, and subscription services such as Netflix and Now TV.

This competition raises questions about whether a mandatory fee for a service some don’t utilize is justified. Furthermore, there’s debate surrounding the severity of non-payment and whether criminal prosecution is a proportionate response.

While the licence fee is guaranteed until December 31st, 2027, its future beyond that date is uncertain. BBC Director General Tim Davie has acknowledged the need to examine the fee’s relevance in a world saturated with media choices. He has indicated that the BBC will proactively investigate potential reforms to the licence fee after 2028.

This process will encompass evaluating the fee’s scope, exploring ways to make it more progressive, and ensuring fair and proportionate enforcement. A comprehensive public consultation will be conducted to gather input on the future direction of the organization. The BBC will also collaborate with the government’s review of BBC funding, launched in December 2023.

Alternative funding models have been proposed, including a tax on broadband connections, a government grant funded by general taxation, partial funding through advertising, and a subscription model.

You are legally required to pay the TV licence fee if you watch or record live broadcasts on any channel, watch live programmes on any online TV service (e.g., Channel 4, YouTube, Amazon Prime Video), or download or watch BBC programmes on iPlayer. These rules apply to any device used for viewing, including TVs, computers, mobile phones, tablets, and set-top boxes. However, if you avoid BBC iPlayer, you don’t need a licence to watch non-live programmes or clips on streaming services like Netflix or YouTube.

Certain exemptions exist, such as for individuals over 75 who receive Pension Credit. Those registered as blind are eligible for a 50% discount. In 2022-23, the BBC funded 947,000 free licences. A Simple Payment Plan allows those facing financial difficulties to spread the cost over 12 months.

Failure to pay the licence fee can lead to prosecution. In 2022, over 40,000 convictions for licence fee evasion resulted in an average fine of £202. Imprisonment is not a direct consequence of evasion but can result from failing to pay the associated fine. According to the TV Licensing Annual Review 2022/2023, 90% of households requiring a licence possess one.

During the 12 months leading up to March 2023, over a million addresses were visited, and nearly 73,000 individuals were found watching live TV without a licence. The review revealed that £137 million was spent on licence fee collection. The government review will address the enforcement of non-payment, particularly concerning vulnerable individuals.