TV licence fee to rise by £5 to £174.50 a year from April 2025 – here's what you need to know

The cost of a black-and-white TV licence – still used by around 3,600 UK households, according to TV Licensing figures from March 2024 – will also rise, by £1.50 from £57 to £58.50 a year from 1 April.

Those who are blind (severely sight impaired) are currently eligible for a 50% discount on a TV licence. At present, they pay £84.75. However, the Government says any change to this price won't be confirmed until January.

Price changes will take force from 1 April 2025

Here's what existing TV licence holders need to know:

• Pay annually? If your renewal is on or before 31 March 2025, you'll pay the current price for your next year's licence. If your renewal is on or after 1 April, you'll pay the new, higher price. You can only renew your licence from the first of the month it expires in.
  
  So, if, for example, your TV licence runs out on 30 April, you can only renew it from 1 April. This means you CAN'T beat the hike by renewing early.

• Pay in instalments? If you pay monthly or quarterly via direct debit, or weekly, fortnightly or monthly using a payment card, you'll continue to make payments towards the total cost of your current licence, even once the price rises kick in. You'll only start to pay the new, higher prices when your licence next comes up for renewal after 1 April 2025.
  
  The Government has also announced it will expand its 'Simple Payment Plan' – which enables those who are struggling to split their annual TV Licence payment into more manageable fortnightly or monthly instalments for free – to an additional 9,000 households on a case-by-case basis.

If you don't currently have a TV licence and you were planning to get one, if your circumstances allow, try to buy it before 1 April 2025 – and as close to that date as possible to delay paying the new higher fee for as long as possible. However, take care not to leave yourself in a situation where you risk watching 'live' TV or BBC iPlayer without a licence.

Consider if you still need a TV licence

Of course, you might be wondering whether you need a TV licence at all – and if you only watch certain channels on catch-up, you may not need one. For full info, see our 20+ TV licence tips.

TV Licensing rules state that you can only cancel your licence if:

• You don't watch or record live TV on any channel or device and you don't download or watch BBC programmes on BBC iPlayer;

• You're moving to an address that already has a TV Licence;

• You're moving into a care home;

• You're moving abroad;

• The licence holder has died; or

• You have more than one licence for the same address.

It adds that you may be able to get a refund on your TV Licence if there's at least one whole month left on it and you won't need it again before it expires.

Are you aged 75 or older? Some can get a free TV licence

All over-75s used to be able to get a free TV licence, but this was scrapped in 2020. Now, free licences are only available to over-75s who receive the Pension Credit benefit. To see if you can get a free licence in the UK, go to the TV licensing website or call its over-75s information line free on 0800 232 1382. And to see if you're eligible for Pension Credit, check out our Pension Credit guide.

Over 75 and live on the Isle of Man or Channel Islands? The TV licence rules are different there – full help in Are you eligible for a cheaper licence?.

Why TV licence prices are rising

TV licence prices are set by the Government. The price rises announced were calculated using an inflation figure of 2.96%, which was the Consumer Prices Index (CPI) measure of inflation for the 12 months to September 2024. It was also confirmed that the TV Licence will rise in line with the previous September's CPI inflation each year until 2027.

The Government added that it will review the BBC's Royal Charter to "consider funding options to support the national broadcaster's long-term future", adding the price hike was to ensure the BBC had a stable financial footing until the end of this Charter period in 2027.