The TV Licence Fee’s Decline: Key Statistics
According to online news outlet, Cord Busters, as of February 2025:
- Approximately 287,000 households are on a Simple Payment Plan, which spreads the licence fee’s yearly cost across smaller monthly instalments for qualifying households.
- 53% of households on a Simple Payment Plan for their TV licence genuinely struggle to afford the fee, even with this flexible payment option.
- To avoid the fee, around 500,000 households cancelled their licenses in the 2023-24 financial year, and around 3.6 million households have legally declared they do not need a TV licence.
As of March 2026, the BBC says 94% of adults are using its services each month, but the number of households paying the licence fee has now dropped to 80% – a trend that is set to continue.
What Does this Mean for TV Licence Fee-Payers?
If you’re part of the 80% who do pay for a TV licence, payments will be going up by £5.50 to £180 per year (£15 per month) from Wednesday, 1st April 2026. This increase is in line with the recent rise in inflation (3.15%).
Who Needs to Pay for a TV Licence?
No matter which device you use, if you do any of the following, you need to pay for a TV licence:
- Watch, record or download any live television on any channel (e.g. BBC, ITV, Channel 4, international channels, etc.)
- Watch, record or download live television on pay TV services, such as Sky, Virgin Media or EE TV
- Watch, record or download live television on streaming services (i.e. YouTube, Netflix or Amazon Prime Video)
- Watch, record or download anything on BBC iPlayer (whether live or not)
If you only watch on-demand/catch-up television on streaming services, like ITVX, All 4 or My5 for example, you don’t need a TV licence.
Are There Any Other Changes Coming?
While no changes are set in stone just yet, the entire funding model of the BBC is currently under review, with suggestions from the corporation including:
- Opening up the iPlayer and BBC Sounds services to advertising-funded programmes from ITV, Channel 4 and other broadcasters to ‘protect British content’
- Placing BBC drama programmes behind subscription paywalls
- Cutting the cost of the licence fee if more people pay
While the BBC has made the above suggestions, it’s leaving the funding model’s future in the hands of the government, as they get the public’s opinion via their green paper and public consultation (closed on Tuesday 10th March 2026).
How to Save Money on a TV Licence
- Check if you’re eligible for any discounts: If you are 75 or over, blind (severely sight impaired), live in a care home, or you/your partner receives Pension Credit, you can apply for a free or reduced fee licence.
- Check if you’re eligible to join the Simple Payment Plan (SPP): Introduced to help those in financial difficulty, the Simple Payment Plan allows you to pay either every two weeks or every month. It also offers flexibility if a payment is missed, spreading what you owe across the rest of the plan, instead of needing to pay double next time. But if you miss payments three months in a row, you will be removed from the SPP.
- Watch on-demand/catch-up TV on ITVX, All 4 or My5: The simplest way to save money on a TV licence is to avoid any live content or catch-up programmes on BBC iPlayer. This allows you to legally declare that you don’t need a TV licence, which you can do online, meaning you won’t need to pay the fee.
- Consider other options: Take a look at the other, more budget-friendly options available to you. For example, Netflix and Disney+ both offer a ‘Standard with Ads’ subscription for £5.99 a month (working out around £9 cheaper than the new licence fee). Amazon Prime also offers a standalone Prime Video subscription for £7.99 per month (with ads) or a full Prime membership, which gives you access to unlimited free, next-day (or same-day, where possible) Amazon deliveries too (and Amazon Music), for £8.99 per month.
Are You in TV Package Arrears?
If you’re behind on your TV licence or pay-TV package, you’re not alone. In fact, as of March 2023, 8 million households were having problems affording their communications services (this number had doubled since 2021).
We’re here to help, not to judge. So, if the rising cost of living is impacting your ability to cover day-to-day costs, please contact Angel Advance today to get free*, confidential debt advice over the phone, via email, through WhatsApp, or in a webchat.
If you’re not ready to speak to one of our advisors yet, try our free online debt advice tool, which is available at any time, day or night. Simply fill in your details and it will create a monthly budget for you, provide you with debt advice specific to your situation, and show you which debt solutions you might be eligible for – all in less than 15 minutes.
*Our advice is free, but if you sign up for a debt solution, a fee will apply for some solutions.
