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The BBC licence fee

Under its Royal Charter (PDF) and Agreement (PDF), the BBC is funded primarily through a licence fee.

Under part 4 of the Communications Act 2003, a licence is needed to:

  • watch or record TV on any channel on any TV service (like Sky, Virgin Media and Freeview)
  • watch live on streaming services (like ITVX, All 4, YouTube and Amazon Prime Video)
  • use BBC iPlayer

The above applies to any device used, including a TV, desktop computer, laptop, mobile phone, tablet, games console, digital box or DVD/VHS recorder.

The offence of non-payment

It is an offence, under section 363 of the 2003 act, to install or use a television receiver without a licence.

The use of a television receiver without a valid licence can lead to prosecution, a court appearance and a fine of up to £1,000. Cases are usually heard in the magistrates’ courts. If a fine isn’t paid, the court that issued it may impose a custodial sentence. The sentence is for non-payment of the court fine, not for non-payment of the licence fee.

There are concerns that the current criminal sanction is disproportionate and unfair and causes stress and anxiety for some of the most vulnerable people.

Decriminalising non-payment of the licence fee would require primary legislation.

BBC Charter review

The current BBC Charter began on 1 January 2017 and runs to 31 December 2027.

The government launched the BBC Charter review on 16 December 2025. In its green paper on the review (PDF), the government said it was concerned that around 75% of prosecutions for TV licence evasion were against women. It was also concerned about the impacts of enforcement methods (such as letters and visits from TV Licensing) on vulnerable people.

However, the green paper also notes that licence fee evasion is rising and that it was important for the BBC to have the “right tools to effectively carry out its statutory collection and enforcement duties”. The government would therefore consider how compliance could be promoted and how the enforcement challenges associated with the current model could be addressed.

A consultation on the green paper closed on 10 March 2026. The government is considering the responses and has said that it plans to set out its policy decisions in a white paper, expected to be published later this year.


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