The BBC TV licence fee is set to rise from £174.50 to £180 starting 1 April 2026, marking an increase of £5.50 per year. This translates to an extra 46p per month, raising the monthly cost to £15. This hike has drawn criticism as it now positions the BBC licence as more expensive than major streaming platforms such as Netflix and Disney+.
Netflix offers a standard subscription at £12.99 per month, which includes ad-free HD streaming on two devices simultaneously, while Disney+ costs £9.99 per month for its standard plan. Additionally, both Netflix and Disney+ provide cheaper ad-supported packages for £5.99 each, allowing viewers to subscribe to both for just £11.98 monthly—significantly less than the BBC licence fee.
Despite concerns about affordability, the government defends the fee increase, emphasizing support for households experiencing severe financial difficulty. Free licences remain available for over-75s receiving Pension Credit, and reduced fees apply for care home residents and blind individuals. The government states the rise is necessary to maintain the BBC’s financial stability and to support the wider creative industry. The licence fee will remain in place until the current charter expires on 31 December 2027.
READ MORE: Five-Year Driving Ban for Man Who Drank ‘A Couple of Ports’ Before Driving 4x4
READ MORE: North Somerset Council Seeks Approval for Up to 10% Council Tax Increase Amid Budget Crisis
Critics argue the fee is outdated and burdensome. Ben Perks, Managing Director of Orchard Financial Advisers, labelled the government “out of touch,” suggesting the licence fee should be scrapped in favour of advertising breaks, which many viewers tolerate. Colette Mason, an AI consultant and author, contends the BBC is expensive and inefficient if judged merely as an entertainment service. She highlights the BBC’s unique role in providing trusted news, national education, and cultural preservation, which cannot be measured solely by subscriber numbers.
Others see the licence as a compulsory charge that doesn’t reflect individual consumption. Entrepreneur Kundan Bhaduri calls the government’s rationale for the fee hike “laughable,” accusing it of prioritizing establishment interests over taxpayers. Conversely, Samuel Mather-Holgate, an independent financial adviser, argues that without an alternative funding model, the licence fee remains the most viable means to finance the national broadcaster, noting its general popularity among the public.
Calls for more radical reform also surface. Rohit Parmar-Mistry, founder of Pattrn Data, warns against adopting a subscription-based model and urges the BBC to reclaim its public service mission. He criticizes the corporation for being risk-averse and mimicking global streaming platforms, emphasizing the need for targeted funding reforms that eliminate bureaucratic waste and empower creative talent.
In its official response, the government highlights the BBC’s position as the UK’s most widely used and trusted media brand, with 94% of adults engaging monthly. It acknowledges financial pressures on households and commits to sustaining a fair, affordable funding model. The Simple Payment Plan remains available to spread out licence fee payments.
As the fee rises, the debate continues over the balance between public service broadcasting and affordable access in a rapidly changing media landscape.