The DWP has confirmed state pensioners aged 75 and over who are eligible for Pension Credit can cut their BBC TV Licence bill down to £0 with a single claim
The Department for Work and Pensions (DWP) has confirmed that state pensioners aged 75 and above on a low income can reduce their BBC TV Licence bill to £0 through a single claim. Following a £5.50 price rise on April 1, a TV Licence now costs £180 annually, or £60.50 per year if you own a black and white television set.
Households are facing another price increase in April 2027 as the UK government determined the TV Licence fee would rise with inflation for the remainder of the Charter period, which extends until the end of 2027. This year, the licence fee has increased in line with inflation as mandated by the 2022 Licence Fee Settlement, and it will climb again in accordance with CPI inflation next April.
Households require a TV Licence to watch or record programmes on a television, computer, or other device on any channel or service as they are broadcast – including on-demand BBC programmes on BBC iPlayer.
However, it’s possible for certain pensioners to avoid the licence fee entirely, effectively reducing bills to £0 by claiming one DWP benefit-Pension Credit. For money-saving tips, sign up to our Money newsletter here
Pension Credit delivers additional money to state pensioners on a low income, and following a 4.8% rise on April 6, the DWP has confirmed the benefit is now worth £4,300 on average annually.
Under the new April 2026/27 rates, individual claimants can boost their income to £238 weekly, or their combined weekly income to £363.25 per week if they have a partner.
However, the benefit also provides access to a wide range of supplementary financial assistance, including a complimentary TV Licence for those aged 75 or above, enabling eligible older pensioners to reduce their TV Licence cost from £180 annually to nothing through a single application.
Announcing the Pension Credit increase in April, alongside the advantages it provides, the DWP stated: “Pension Credit will also rise by 4.8% and be worth an average of £4,300 a year, unlocking further support including help with housing costs, council tax and free television licenses. Between 2026 and 2027, the government will provide a £6 billion boost to spending on State Pensions and pensioner benefits.”
According to the DWP, applying for Pension Credit takes an average of merely 16 minutes, and should you qualify, the benefit can grant you access to thousands of pounds in additional support.
Those already receiving Pension Credit can apply for a complimentary TV Licence at age 74, though you’ll need to keep paying for your licence until the end of the month before your 75th birthday. Following this, your free licence will take effect.
For individuals who don’t satisfy the eligibility requirements for Pension Credit, alternative methods exist to lower your TV Licence bill, or eliminate the charge completely.
According to TV Licensing, you ought to cancel your TV Licence if you no longer watch live television on any channel, TV service or streaming platform, or use BBC iPlayer. Therefore, if this applies to you, you can cancel your licence and may qualify for a refund if, before your licence runs out, you won’t be doing any of the following:
- watching TV on any channel, like BBC, ITV, Channel 4, U&Dave and international channels
- watching TV on pay TV services, like Sky, Virgin Media and EE TV
- watching live TV on streaming services, like YouTube, Netflix, and Amazon Prime Video.
- using BBC iPlayer
This encompasses recording and downloading programmes on any device. However, if you still require your TV Licence, there are alternative methods to lower the expense.
If you reside in a residential care home, supported housing or sheltered accommodation, you may be entitled to a reduced fee TV Licence, and if you’re blind (severely sight impaired) and can supply the relevant documentation, you can apply for a 50% discount on your TV Licence. But if neither circumstance applies, you’ll need to pay for a TV Licence at the full rate.
If you don’t satisfy the eligibility requirements for Pension Credit or qualify for a reduced fee TV Licence, there are still several options to economise.
TV licences are per household, not per individual, so if you live in a property with multiple people, you don’t all need separate licences and could collectively contribute towards the cost of one licence. Instead, you can share a TV Licence amongst the entire household if you watch television in a single communal space, or have a joint tenancy agreement. However, if you have separate tenancy agreements and watch TV in your own room, you will need to purchase your own.
A TV Licence is also not required to access streaming platforms such as Netflix and Disney Plus, on-demand television through services like All 4 and Amazon Prime Video, video content on websites such as YouTube, or DVDs and Blu-rays.
So, if you’re content to limit yourself to any of these options, and refrain from watching or recording live television or BBC iPlayer, you could save yourself £180 each year.
However, should you watch or record live TV without a valid TV Licence, you could face a penalty of up to £1,000.
