Watch our short video on how your TV Licence fee supports a wide range of programmes, films, and services - on TV, radio and online.
The licence fee also ensures that all radio, TV and online services are free from commercial advertising and free at the point of use, on a wide range of platforms and devices.
The TV Licence fee is the main source of funding for all of our BBC television, radio and online services. Your TV Licence fee contributes on screen, on air and online.
Each week, 90% of UK adults use BBC services1, from TV channels and BBC iPlayer to national and local radio stations, and entertainment, films on TV, services and information online.
BBC Education delivers the BBC's public purpose to promote education and is central to fulfulling the BBC's mission to inform, educate and entertain.
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 TV Licence fee as possible goes towards funding them.
86% of the licence fee is spent on BBC TV channels, radio stations, BBC iPlayer, BBC Sounds and online services. This includes popular programming like news, documentaries, dramas, comedies, and films on TV.
Monthly spend in 2020/21 – £13.13 per household
Television: £6.42
Radio: £2.29
BBC World Service: £1.28
Other services and
production costs: £1.10
Online: £1.32
Licence fee collection and pension deficit cost: £0.72
The costs of administering the TV Licence are less than you might think. For every £1 taken in licence fee payments, just 5p is spent on collection and pension deficit costs2.
Part of the fee also contributes towards Freeview and Freesat, and towards the UK broadband rollout, funding local TV channels and S4C, the Welsh language TV channel, as agreed with the government as part of the 2010 licence fee settlement.
The Government is responsible for setting the level of the licence fee. In November 2024 the Secretary of State announced that the Government would raise the licence fee by 2.9%, in line with annual CPI inflation, taking effect from 1 April 2025. This will bring the cost of a colour licence fee to £174.50 per year and a black and white licence fee to £58.50 per year.
This is a rise of just over 1p a day and is the second time the licence fee has increased since 1 April 2021.
The Government decided that the licence fee would rise annually in line with inflation from 1 April 2024 for the remaining four years of the Charter period. The BBC’s current Charter runs until end 2027.
1, 2 Source: BBC’s Annual Report 2020/21 (English)