The BBC licence fee is going up. Here's how you can defer the cost

Lucy Harley-McKeown
Updated
licence fee LONDON, UNITED KINGDOM - 2022/01/17: The BBC logo is seen at the entrance at Broadcasting House, the BBC headquarters in central London.The UK government has announced it will freeze the broadcaster's budget for the next two years and will end the license fee in 2027. (Photo by Vuk Valcic/SOPA Images/LightRocket via Getty Images)
There's no way to dodge the licence fee hike if you watch TV at home, but there are some tricks you can use to make it more affordable (SOPA Images via Getty Images)

The BBC's licence fee is set to go up to £169.50 from 1 April, an increase of £10.50 on the current price of £159 — the first planned increase since 2021.

There's no way to dodge the price hike if you watch TV at home, but there are some tricks you can use to make it more affordable this year.

The licence fee is set by the government and is increasing according to the inflation rate of 6.7%, calculated for the year to September 2023.

The BBC, the main service the fee pays for, has previously said it is looking at making £500m in cost cuts and assessing its priorities due to the fact the fee froze over the last two years and costs have gone up with inflation.

In November last year, independent MP Julian Knight asked the Department for Culture, Media and Sport (DCMS) if it would consider "freezing the television licence fee in 2024".

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“We agreed a fair settlement with the BBC that will see the licence fee remain at £159 until 2024 to protect licence fee payers from inflationary pressures, and then rise in line with inflation until the end of 2027 when the current Charter is due for renewal," Sir John Whittingdale MP said in a written response.

It was then announced that the fee would rise in December.

How to minimise TV licencing costs

One trick you can use, suggested by MoneySavingExpert, is to arrange to pay for the licence fee via direct debit or a payment card in instalments. That way you won't be hit by the increase until the license next renews. This will involve paying monthly or quarterly.

It will mean the total fee will still be £159 for the year even though the new fees start in April.

The licence can be renewed from the first day of the month in which it expires.

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A second strategy would be to renew your licence fee and pay the full amount before the hike kicks in in April. Renewing it before April means you'll pay the previous amount regardless of the planned increase. Your payment would then increase in 2025.

Some people will be eligible for a free TV licence regardless of the fee going up.

If you are over 75, and receive the pension credit benefit, this will mean your licence is free. More information is available on this and eligibility via the license fee hotline: 0800 232 1382.

Not paying your licence fee could leave you subject to a £1,000 fine.

Watch: Culture secretary announces rise in BBC licence fee in 2024

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