TV licence fee set to rise above £180 next year amid inflation surge

Under current government rules, the annual fee for watching live television or streaming services is linked to inflation until at least spring 2028.

With inflation running at 3.8% in the year to September, the current £174.50 licence fee is projected to increase by almost £7, taking it to just over £181.

The official rise is due to be confirmed later this month.

If introduced, it would be the first time the cost of a TV licence has passed £175 a year, and two years earlier than ministers had forecast when the funding deal was struck in 2022.

The hike comes as many households face mounting bills for food, rent and energy - and as a growing number abandon the traditional licence in favour of streaming services such as Netflix and Amazon Prime.

Figures show around 300,000 households stopped paying the licence fee last year alone.

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The 2022 agreement between the government and the BBC linked future rises in the licence fee to inflation, after a two-year freeze.

Ministers at the time expected the price to stay below £175 until at least 2028, but persistently high inflation has pushed it higher.

Culture Secretary Lisa Nandy has said she plans to review how the BBC is funded once the current arrangement ends.

She has suggested combining the licence fee with other revenue sources, such as advertising or subscription-based services for certain BBC content.

The increase, if confirmed, means UK households will soon be paying the highest-ever price to legally watch live television — even as more viewers turn away from traditional broadcasting.

The Department for Culture, Media and Sport (DCMS) said:

"No final decision has yet been made on the exact level of next year's licence fee. We will set this out in due course."

Who can get a free or discounted TV licence:

• Free licence: If you are aged 75 or older and receive Pension Credit, or live with a partner who does. You can apply once you turn 74 but must continue paying until the end of the month before your 75th birthday.
• Discounted licence: If you live in residential care or sheltered accommodation, or if you are registered blind.
• Half-price licence: People who are blind or live with someone who is can claim a 50% discount, as long as the licence is held in the name of the registered blind person.
• £7.50 licence: Those over 60 living in residential or sheltered housing who are disabled may qualify for a special concessionary rate.