What does your licence fee pay for?

The UK is buying more TV Licences than ever1. This income means all licence payers can enjoy an ever-wider choice of BBC shows and services, free at the point of use, on a range of platforms.

By buying a licence you support the creation of BBC programmes and services, and new ways of bringing them to you. Our purpose is to ensure as much of the fee as possible goes towards funding them.

Even though the ways we watch and listen are changing, the licence fee also allows the BBC's UK services to remain ad-free and independent.

Your fee contributes on screen, on air and online

Each week, 96% of UK adults use BBC services2, from TV channels and BBC iPlayer to national and local radio stations, and entertainment, services and information online.

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How is the money spent?

Over 90% of the licence fee is spent on BBC TV channels, radio stations, BBC iPlayer and online services.


Monthly spend in 2015/16 - £12.13 per household

Licence fee spend 2015/16 pie chart

TV key icon Television: £7.02

Radio key icon Radio: £2.06

Key icon BBC World Service BBC World Service: £0.83

Spend other icon Other services and production costs: £0.79

Online key icon Online: £0.76

Collection key icon Licence fee collection and other costs: £0.67

The costs of administering the TV Licence are less than you might think. For every £1 taken in licence fee payments, just 3p is spent on collection3.

Part of the fee also contributes to the UK broadband rollout, funding local TV channels and S4C, the Welsh language TV channel, as was agreed with the government as part of the 2010 licence fee settlement.

In 2016 the Government announced that the licence fee would rise in line with inflation for five years from 1 April 2017. A standard TV Licence now costs £147.


1, 3 Source: TV Licensing Annual report 2015/16
2 Source: BBC Annual report 2015/16

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