TV license fee increases – can you pay less?

You probably don’t think much about your TV license, until April rolls around and the price goes up again.

The cost of a standard licence has risen to £180 from April, another increase for households already struggling with higher council tax, energy bills and broadband costs and unlike some subscriptions you can quietly cancel, this one is backed by law.

If you watch live TV in the UK, or use BBC iPlayer, you are required by law to have a TV license. But who actually needs to pay? And are you missing out on an exemption or discount?

How much the TV license now costs

From April, a standard colour TV license costs £180 per year. If you use a black and white television, it’s £60.50 per year, though very few households still fall into that category. Broken down, the colour license works out at around £15 per month. You don’t have to pay it all in one go, payment options include:

Annual payment (in full)
Monthly Direct Debit
Quarterly payments (which cost slightly more overall)
Weekly or fortnightly instalments using a payment card

While spreading the cost can make it more manageable, it doesn’t reduce the overall bill.

What exactly are you paying for?

The TV license fee funds the BBC’s television, radio and online services. But importantly, it isn’t just about watching BBC One.

You need a license if you:

Watch live TV on any channel – that’s BBC, ITV, Channel 4, Channel 5, Sky or any other broadcaster
Stream live events online, such as live sport on Amazon Prime or YouTube
Use BBC iPlayer, to stream live or catch-up TV
Watch live broadcasts on any device, including a phone, tablet or laptop

The key word is “live”. It doesn’t matter what channel you’re watching, or what device you’re using, if it’s live TV, then you need a license. Failing to have one when required can result in prosecution and a fine of up to £1,000 plus court costs.

When you don’t need a TV license

There are some exceptions, you don’t need a license if you only:

Watch on-demand services such as Netflix, Disney+ or Amazon Prime (as long as you’re not watching live content)
Use catch-up services for ITV, Channel 4 or Channel 5 (but not BBC iPlayer)
Watch pre-recorded content on YouTube (not live streams)
Play video games
Watch DVDs or Blu-rays

You may need to submit a declaration stating that you don’t require a license and you might still receive occasional letters asking you to confirm that your circumstances haven’t changed. That’s part of the enforcement process and not necessarily a sign that you’ve done anything wrong.

Who is entitled to a discount

Most households pay the full amount, but there are some important exceptions; you can get a free TV license if you are aged 75 or over and you receive Pension Credit.If you’re over 75 but don’t receive Pension Credit you still have to pay the full amount. This changed in 2020, when responsibility for funding free licenses shifted from the government to the BBC. The move remains controversial, but currently the rule stands.

For pensioners on a low income, it’s worth checking eligibility for Pension Credit. Many people who qualify don’t claim it and missing out could mean losing access to a free license as well as other financial support.

If you’re blind or severely sight impaired

If you’re registered blind (severely sight impaired), you qualify for a 50% discount on your TV license. You’ll need official certification to apply, but this will significantly reduce the cost.

Residential care accommodation

If you live in a care home, sheltered housing or certain types of supported living, you may qualify for an Accommodation for Residential Care (ARC) license. The costs are per room, per year. However, strict eligibility criteria apply. The license covers only your private room, not communal areas and residents must generally be retired or disabled. Care providers usually manage this arrangement, so it’s worth checking what’s already in place.

Students and second homes

Students often assume they’re automatically covered, but it’s worth checking as it’s not always the case. If you watch live TV or BBC iPlayer in your university room or halls, you usually need your own license.

You may be covered by your parents’ license only if:

You’re watching on a device powered solely by its internal battery, and
The device isn’t plugged into the mains while you’re watching

Similarly, if you own a second home, you’ll typically need a separate license for that property too, unless only battery powered devices are used there. This is a technical criteria and misunderstandings can be common, so take care with this one!

What happens if you don’t pay?

TV Licensing Enforcement Officers can visit your address and investigate any suspected license evasion. Most cases of non payment are dealt with through the courts, with the maximum fine being £1,000 plus costs. Prison sentences are extremely rare and only occur if court fines go unpaid, but as with any fine, the legal consequences can escalate if ignored.

So, if you watch live TV, even occasionally or use BBC iPlayer, then you need a license.

If you’ve fully switched to on-demand streaming services and avoid live broadcasts entirely, you may not.

It’s worth checking whether you genuinely need one, whether you qualify for a discount, whether Pension Credit could entitle you to a free license. Whilst it may not be the largest bill you pay with the continuing cost-of-living squeeze, it’s not insignificant either.

If you have any thoughts on this topic, or any other consumer issues you would like us to cover, feel free to get in touch with us at support@resolver.co.uk