The future of the BBC licence fee

The BBC licence fee might be on its way out by the end of 2027.

The annual fee is set to rise to £174.50 this April.

But the possibility of scrapping it would provide relief for many Brits.

Let’s take a look.

Why might the licence fee be scrapped?

The government plans to keep the licence fee until the end of the current charter period in 2027 so the BBC is financially stable.

The licence fee will also continue to go up in line with inflation until then.

But culture secretary Lisa Nandy has confirmed that a review of the charter will kick off this year to help the broadcaster adapt to the “next generational shift”.

If the plans go ahead, the BBC could become a mutual organisation, owned and run by its members. Programmes would instead be funded from government taxes.

What other changes could be made?

Nandy has spoken about extending the simple payment plan, which supports those who struggle to pay for their licence.

And new laws could also increase support for vulnerable households – 500,000 are expected to be helped by 2027.

What next?

A BBC spokesperson said that they are committed to delivering trusted news and quality storytelling that audiences want. They plan to engage the public in shaping the broadcaster’s future.

The Department for Culture has clarified that funding the BBC through general taxation is off the table. More details on the charter review will be shared soon.

So, stay tuned.

Do I need a TV licence?

You need a TV licence if you:

• watch live broadcasts on any TV channel, even international ones
• use streaming services like All 4 or Amazon Prime and click ‘watch live’
• record live TV on any device (including VHS recorders)
• watch anything on BBC iPlayer, whether live or on catch-up

You don’t need a TV licence for:

• streaming services like Netflix or Disney Plus
• watching on-demand TV via All 4 or Amazon Prime Video
• YouTube videos
• videos or DVDs
• watching something that’s already aired

If you don’t need a licence, you still need to let TV Licensing know.

See if you can get a discount

Some people qualify for a discount:

• If you’re over 75 and get pension credit, you can get a free TV licence.
• If you live in a care home because you’re either disabled or retired and over 60, a TV licence will cost you just £7.50.
• If you’re registered blind, you’ll get a 50% saving.
• Black and white licences are cheaper at £57 but you'll need to have a black and white TV.