2026/27 TV Licence Fee Announced

Recent developments regarding the TV licence fee in the UK highlight significant financial updates for the upcoming 2026/27 period. The government has announced a new increase in the TV licence fee, which will now be calculated based on the Consumer Price Index (CPI) inflation rate.

Details of the 2026/27 TV Licence Fee Increase

The annual cost of a colour TV licence will increase by £5.50. This adjusts the total annual fee to reflect a CPI uplift of 3.14%. The new fee structure equates to an additional 46p per month for viewers.

Impacts of the Fee Increase

This adjustment is designed to ensure the BBC maintains a stable financial footing. As the UK’s leading media brand, the BBC serves 94% of adults monthly and remains a trusted source for news.

• Current Licence Fee: £159.50 for 2026/27
• Black and White Licence Fee: £60.50 for 2026/27

Support for Vulnerable Households

The government is aware of the financial challenges many households are facing. Consequently, it continues to provide support options:

• Free TV licences for over-75s on Pension Credit.
• Reduced fees for care home residents and those with visual impairments.
• Extended Simple Payment Plan allows for smaller payment instalments.

Future Funding for the BBC

This increase is part of the ongoing Charter Review, which aims to ensure a sustainable funding model for the BBC. The current BBC Charter commenced on 1 January 2017 and will conclude on 31 December 2027. During the final year of the current funding settlement, the BBC aims to continue delivering quality public service content.

Initiatives to Engage Young Audiences

The BBC has recently launched initiatives targeting younger viewers and families. These include:

• A partnership with YouTube to establish a CBeebies Parenting channel.
• Six themed channels featuring popular CBBC content.
• Collaborations with the British Library for storytelling events across the UK.

Funding for the Welsh Creative Industries

S4C, which relies solely on licence fee funding, will also benefit. The service is projected to receive around £100 million in 2026/27, reflecting the revenue increase and supporting the growth of the Welsh creative sector.

The government remains committed to ensuring that the BBC’s funding model is fair and sustainable, allowing it to command public trust and deliver quality programming. The new TV licence fee structure will play a crucial role in supporting the BBC’s mission through to the end of its Charter period.