Money

TV licence fee to rise by £1.50 a year from April 2021

Those who are blind (severely sight impaired) are entitled to a 50% discount – meaning that from 1 April 2021, their licences will cost £79.50, a rise of 75p. Meanwhile, the cost of an annual black and white TV licence will rise by 50p to £53.50.

The cost of a TV licence is set by the Government, and in 2016 it announced that the price would rise in line with inflation for five years from April 2017. The rises are calculated using an inflation figure of 1.075%, which is the average CPI inflation in the year to September 2020. 

Can I beat the price rise? 

While you can’t beat the price rise (at least if you still need a TV licence), some households will be able to defer the price hikes. Households in the following scenarios will be able to defer paying the higher rate:

  • Those paying for an annual licence on an instalment scheme which starts/started before 1 April 2021. If you’re buying through an instalment scheme such as through monthly direct debits or weekly cash payments, you’ll  continue to make payments to a total of the current cost of £157.50. Once your licence comes up for renewal, you’ll start paying the full price.
  • Those whose licence expires before 1 April. If your TV licence expires in February orMarch, it’s especially important to renew it before 1 April 2021, so you don’t pay the increased cost. 
  • Those who are buying a new licence. You should buy it before 1 April, if you can, to ensure you pay the lower amount.

Not sure if you need a TV licence? See our 20+ TV licence tips.

I’m aged 75 or over – do I need to pay for a TV licence?

Since August 2020 anyone aged 75 or over now needs to pay for their TV licence – the only exception to this is if you claim pension credit, in which case you can get their licence for free. See our Pension Credit guide to read more about what this benefit is, and if you’re entitled to claim it.




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