A standard TV Licence costs £174.50 and around 300,000 stopped payng in the last 12 months
The Government will consider reforming the licence fee as part of the renewal process of the BBC ’s royal charter, the Department for Culture, Media and Sport (DCMS) has announced.
The charter sets outs the BBC’s public purpose and is the constitutional basis for the corporation, which is predominantly funded through the licence fee paid by UK households who watch TV. A standard TV Licence costs £174.50.
The Government will look at whether licence fee concessions should be updated, options for the BBC to generate more commercial revenues, and also options for funding the BBC World Service to support sustainable funding for minority language broadcasting.
New figures that revealed licence fee cancellations and evasion cost the broadcaster over £1 billion last year, despite a major escalation in enforcement efforts. Total licence numbers have continued to fall, dropping by roughly 300,000 between March 2024 and March 2025.
Culture Secretary Lisa Nandy launched the once-in-a-decade review on Tuesday and said: “We want the BBC to continue to enrich people’s lives, tell Britain’s story and showcase our values and culture at home and overseas long into the future.
“My aims for the charter review are clear. The BBC must remain fiercely independent, accountable and be able to command public trust.
“It must reflect the whole of the UK, remain an engine for economic growth and be funded in a way that is sustainable and fair for audiences.
“As a Government, we will ensure that this charter review is the catalyst that helps the BBC adapt to a rapidly changing media landscape and secures its role at the heart of national life.”
Options that the government is considering and seeking views on in for funding:
- Reform of the licence fee, whether licence fee concessions should be updated, and options for the BBC to generate more commercial revenue;
- Options for funding the World Service and supporting sustainable funding for minority language broadcasting, including S4C.