Two thirds of all UK homeowners are in possession of a television. From 1 April 2026, television owners who pay for public service broadcasting channels such as BBC will pay £180, a £5.50 increase from the previous year.
How many people pay for the licence fee and what does it cover?
The TV licence is a legal requirement for anyone who watches television live on any device, including on Smart televisions, laptops and tablets.
Some of the services provided by this cost are BBC One; BBC Two; BBC IPlayer; BBC Radio and local radio, and BBC News. It also supports the UK creative industry by funding British produced programmes.
As with other living costs, the Department for Media, Culture and Sport (DMCS) said the rise has been calculated using the consumer price index – the main metric used to measure inflation.
Different types of subscription models have been suggested, including a Household Broadcasting Tax, which would be adjusted according to income or a subscription model like Netflix and commercial streaming programmes. However, caution is taken with this approach amidst fears it would commercialise the organisation too much. One proposed model is the introduction of Advertising revenue, a hybrid or two-tier model where premium entertainment programmes are placed behind a subscription paywall. Yet the organisation is unsure about the implications of advertising, because it detracts from its public service remit.
Changing viewing habits of 16–24-year-olds is one reason why television is decreasing in popularity. Their actions have been summarised as ‘swiping and streaming not flipping through broadcast channels’. Live television is watched for only twenty minutes a day compared to three hours of video.
Whether you like the BBC or not, the tax funds British content, and supports the creative industry. The economy is better for the investment in musicians, producers, actors and writers. The New Statesman has described the concept of public service broadcasting, as ‘something that must be protected by the state and delivered by a state-backed provider, is an anachronism’. Some have suggested that the BBC should become a mutual venture owned by its subscribers. The broadcaster would thus be free to develop joint ventures with commercial and charitable organisations. It would be accountable to its owner-viewers and must provide high quality services to keep its revenue. The owner viewers would be responsible for its governance and would elect its board.
The BBC’s reputation is better abroad than in the UK so charging via a subscription allows English speaking countries who do not live in the UK to pay.
There is nothing to say the licence fee will be abolished. The platform YouTube has made a deal with the BBC: it can make shows for the platform which will play on IPlayer and Sounds, in an attempt to retain younger audiences.
The public consultation for the BBC Charter Review ends this week; once the consultation closes the government will publish its findings. The government is evaluating the BBC because of the shift in how homeowners’ access and view TV, a change taking place more quickly than the industry can adapt.#
