Key TV licence fee update as campaign for free state pensioner change hits key threshold

A major update has been given on TV licence payments after the Department for Culture, Media and Sport issued an update on the licence fee.

The Government is set to launch the review of the BBC's Charter, looking at how it should be funded, after committing to increasing the licence fee in line with inflation each year until 2027.

In April, there was a rise from £169.50 to £174.50 in the household charge, after years in which the licence fee was first frozen and then increased at a slower rate than the BBC expected, leaving the corporation increasingly cash-strapped amid rising inflation.

Some have called for the licence fee to be ditched -and with commentators saying it doesn't reflect how young people in particular consume media these days. In a new parliamentary written question

Sorcha Eastwood, an Alliance MP asked ecretary of State for Culture, Media and Sport Lisa Nandy: "To ask the Secretary of State for Culture, Media and Sport, if she will take steps to ensure that the TV licence payment structures are (a) transparent, (b) proportionate and (c) accessible to people who cannot afford to pay the licence fee in one lump sum."

The question came as a campaign to fund free TV licences for all pensioners neared a key threshold. A petition on the Parliament website has almost reached 10,000 signatures, meaning the government will be forced to make an official response. It says: "We want the Government to fund free TV licences for existing pensioners and those who reach the official retirement age. When people reach retirement age, we think they should receive a state-financed free TV licence.

"Many pensioners live on the breadline with only the TV for company. With the cost of food soaring and utility bills ever higher, we feel there is a desperate need to provide all pensioners with at least this concession.

"We feel it is a double outragethat those who have given their all to this country in taxes and raising children have to pay a TV licence fee and are only exempt if they receive means-tested Pension Credit. Meanwhile, some media figures draw huge salaries."

Stephanie Peacock Parliamentary Under-Secretary of State for Sport, Media, Civil Society and Youth said the government was committed to a 'fair' system of finding. She told Ms Eastwood: "Television licences are issued on an annual basis and households can choose a variety of payment plans to spread the cost of the licence, including monthly and quarterly payment plans.

"New joiners to TV Licensing's monthly direct debit scheme pay for their first licence over 6 months. This front-loading of payments is a requirement set out in legislation. After the initial 6 months of joining the scheme, households pay towards their next licence through payments spread over 12 months. This is intended to reduce the BBC's exposure to unexpected changes in its income that could result from households stopping their fee payments part-way through the year, and which could impact the BBC's ability to deliver its services for the public.

"The Government recognises the financial difficulties faced by some households. This is why we announced a significant extension to the Simple Payment Plan to support more households by enabling them to split up the annual licence fee payment into more manageable fortnightly and monthly instalments.

"This payment plan does not require front-loading. The changes, which came into effect in February 2025, make a greater number of households eligible for the Plan.

"The Secretary of State is a strong supporter of the BBC and has been clear that the BBC must be funded by a model that is sustainable and fair to all those that are paying it. The Government is keeping an open mind about the future of the licence fee, and the forthcoming Charter Review will provide an opportunity for the Government to consider the best possible funding model to set the BBC up for success long into the future."

To view the petition click here.