Millions of households are facing higher bills for the BBC as the TV licence is projected to rise to nearly £200 by the end of the decade.
The annual charge will jump from £174.50 to just under £197 if it continues to track inflation, the Office for Budget Responsibility forecasts.
At the same time, more than one million families are expected to ditch the licence completely, cutting the number of paying households to around 21 million by 2029. Already 3.6 million say they don’t need one – 300,000 more than last year.
With September’s inflation running at 3.8 per cent, next year’s bill alone could top £181, raising fears that even more viewers will decide it is no longer worth paying for.
Households are turning away from the TV licence in huge numbers, with the BBC losing more than £1billion to cancellations and non-payment in the past year, a Commons Public Accounts Committee report has revealed.
A further 300,000 homes stopped paying in 2024 alone, as viewers switch to streaming platforms such as Netflix, Amazon Prime and Disney+ instead of traditional TV.
The committee found that one in eight people now actively avoid paying while still accessing BBC services. Between those deliberately evading the fee and those cancelling legitimately, the lost revenue would have totalled £617million if every household had continued paying.
Social media users expressed their frustration, with one posting: “The BBC can charge as much as they like because I’ll never watch them or pay for their crap again. 8 years licence free and terrestrial TV is so yesteryear now.”
Culture Secretary Lisa Nandy faces a February deadline to determine whether the licence fee will increase by nearly £7 this spring, pushing the annual cost beyond £180.
BBC TV licence fee set to rise to almost £200
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PAThe proposed rise, calculated using September’s 3.8 per cent inflation rate, comes as households grapple with escalating food and energy expenses.
Ministers have previously blocked such increases, with the Conservative government implementing a two-year freeze in 2022 before agreeing to inflation-linked adjustments for the Charter period’s remainder.
Ms Nandy has pledged to explore “radical” options whilst examining the funding system, though she maintains the corporation requires sustainable financial support.
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Younger audiences are moving away from traditional TV
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SKY TV PRESS OFFICEThe Culture Secretary must weigh blocking the scheduled increase against the BBC’s deteriorating finances, as licence fee income has already declined 30 per cent in real terms since 2010.
The funding crisis arrives as the BBC prepares for pivotal negotiations regarding its operational future, with the Royal Charter set to expire in 2027.
These discussions occur against a backdrop of sustained financial pressure that saw licence fee revenue drop by 30 per cent in real terms between 2010 and 2020.
The corporation must navigate these talks whilst addressing the bias scandal’s fallout
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GETTYThe corporation must navigate these talks whilst addressing the bias scandal’s fallout and confronting viewer defection to streaming platforms.
Public sentiment appears increasingly hostile, with one person stating: “People are cancelling in their droves and it seems other than letters and threatening behaviour there’s jack they can do about it.”
The BBC is heading into its most difficult period yet, as huge financial losses, senior resignations and the looming Charter renewal raise questions about whether the corporation can continue in anything like its current form.