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TV licence fee set to rise for third year in a row, hitting £180

The licence fee, which provides the BBC with funding, is increased based on the annual Consumer Price Index inflation rate

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The fee, which currently costs £174.50, will rise by £5.50 to £180 a year from April
The fee, which currently costs £174.50, will rise by £5.50 to £180 a year from April. Picture: Getty

By Frankie Elliott

Households across the UK will be put under further financial pressure after the government announced the TV licence fee would rise for a third straight year.

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The fee, which currently costs £174.50, will rise by £5.50 to £180 a year from April.

Last year, it increased by £5 and £10.50 in 2024 following two years of frozen fees.

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The licence fee, which provides the BBC with funding, is increased based on the annual Consumer Price Index inflation rate.

This practise will continue until 2027, the Department for Culture, Media and Sport said.

"The government recognises the financial pressures on households and is committed to ensuring the BBC’s funding model is sustainable, fair and affordable," it said.

By law, UK households have to pay the fee is they watch or record programmes as they're being shown on any TV channel.

They also have to pay if they watch or stream shows live on any online TV service, such as All4 or YouTube, or download or watch any BBC shows on iPlayer.

The rules apply to any device, including TVs, laptops, phones and tablets.

The annual cost of a black and white TV licence will be £60.50 for 2026/27.

There are concessions available for people who are aged 75 and over, who receive Pension Credit, blind people, those who live in qualifying residential care and are disabled or over 60 and businesses that provide overnight accommodation.