The government has confirmed that the annual cost of a TV licence will rise to £180 from 1 April 2026, as required by the 2022 Licence Fee Settlement, in line with inflation.

The increase follows the methodology of calculating the licence fee in line with the consumer price index (CPI) until the end of the BBC Charter Period.

This means the cost of an annual colour TV licence will rise by £5.50, or the equivalent of an extra 46p a month.

The increase in the cost of the TV licence will help keep the BBC on a stable financial footing, enabling it to continue to deliver on its Mission and Public Purposes. The BBC is the UK’s number one media brand, with 94% of UK adults using the BBC each month last year and it remains the UK’s most widely used and trusted news outlet.

Free licences remain available for over-75s on Pension Credit, with reduced fees for care home residents and blind individuals.

S4C, which receives all its public funding from the licence fee, will also see its revenue increase proportionately, receiving approximately £100 million in 2026/27 to support the growth of the Welsh creative industries.