With a lot high quality TV now on-line from the likes of Netflix and Disney, I’ve taken a glance into whether or not paying for the BBC represents good worth for cash.

It’s been introduced that in April 2025, the TV Licence is rising by £5 a yr, with the annual value set to be £174.50.

That is the primary inflation linked enhance in three years, and that’ll proceed till 2027. Nonetheless, it gained’t reverse years of underfunding because of zero or beneath inflation hikes, which led to price range cuts – and lots of would argue a reducing of high quality in BBC output.

For some, this newest enhance means they’ll advocate for folks to cancel their TV Licence now slightly than pay extra. I’ve shared on this article who must have one and who doesn’t.

Nonetheless for me, the massive query isn’t the right way to ditch the licence payment, however ought to you?

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Who wants a TV Licence

Right here’s whenever you want a TV Licence:

  • For those who watch any reside TV
  • For those who report any TV
  • For those who watch BBC TV on iPlayer, irrespective of the gadget (eg in your telephone, video games console, TV and so on)

Regardless of increasingly of us utilizing streaming providers, that is nonetheless just about most TV viewing.

So realistically the one approach you’re eligible to keep away from the licence payment is if you happen to solely watch on-line streaming or catch up providers (not together with iPlayer), and if you happen to by no means watch or report broadcast TV.

Now if that’s the case, then you definately don’t must pay, and I’ve shared additional down how one can cancel your TV Licence.

Over 75s

A rule change a number of years in the past meant not throughout 75s get a free TV Licence. Nonetheless, many will nonetheless be capable of declare one so long as they already obtain pension credit score. Right here’s extra data on the TV Licensing website.

Earlier than we begin

Everybody has an opinion in regards to the BBC, particularly the information output which these on the proper say is just too left wing and people on the left say is just too proper wing. We’re going to place that apart for this evaluation and focus simply on what you get for the cash you pay.

I additionally wish to put my playing cards on the desk right here in the beginning. After I was 5 or 6, I declared that I wished to work for the BBC after I was older. And I did. From 22 to 33 years outdated I labored all around the Beeb, earlier than leaving to start out up Be Intelligent With Your Money. So it’s vital to me.

Although it’s definitely not excellent (what massive organisation is?). I do consider we’re higher off as a rustic with the BBC than with out. And that may clearly inform on my evaluation beneath.

Nevertheless it’s greater than a decade since I left the broadcaster, and a lot has modified in that point – not simply on the BBC, but in addition how we eat our media – which fits for me too.

And the price of dwelling disaster has made each penny we spend a lot extra vital, making worth for cash as a licence payment payer one thing that basically does want interrogating.

What I watch

So do I get worth from BBC TV? Over the previous couple of years my TV viewing has modified drastically. Lots of my favorite dramas and comedies will be discovered on Netflix, Sky Atlantic and Disney+.

But I do nonetheless watch loads of wonderful regular TV, primarily BBC and Channel 4 (you want a TV Licence to observe or report any reside TV). In actual fact a number of the greatest reveals I’ve watched during the last yr have been on these channels.

Blissful Valley, Ghosts, Traitors, Race Throughout the World, Match of the Day, Wimbledon, Ludwig and Outlaws (all BBC), by to It’s a Sin, The Nice British Bake Off and The Handmaid’s Story (all C4). And there are many nice older reveals obtainable on-demand too, corresponding to traditional Attenborough, Motherland, His Darkish Supplies, Peaky Blinders, The IT Crowd and The Bridge.

And I’m not alone. Most TV viewing is of a free to observe channel, whether or not that’s through Freeview or Sky. And the most-watched reveals yearly are on the BBC, ITV and Channel 4. Even huge import TV reveals like Recreation of Thrones or Stranger Issues haven’t come shut.

Nonetheless, £175 yearly is some huge cash. And there are some cheaper alternate options with excellent programmes.

How the TV Licence value compares to different media providers

For those who pay for the TV Licence month-to-month on the new value it’ll work out as £14.54 a month.

It’s far cheaper than paying for TV via Sky or Virgin, the place you’re no less than double that quantity each month, and probably as a lot as £100.

Elsewhere we’ve seen various streaming providers hike costs, closing the hole to the licence payment.

Sky’s “on-demand” service NOW is £9.99 a month for the Leisure channels (not motion pictures or sport), or £119.88 a yr – although there are deals to get this even cheaper, often half the price. However in order for you HD and to ditch adverts you’ll pay one other £6 to £9 every month.

Amazon Prime now is available in at £95 for the yr, which is £7.92 a month (and streaming only is available at £5.99 a month) – although you’ll have to pay extra if you don’t want adverts.

After clamping down on sharing, Netflix begins at £5.99 a month (with adverts), however the preferred package deal is £12.99 a month, understanding at £15588 a yr. You’ll be able to pay extra, at £18.99 a month for the highest tier

Disney revamped prices in October 2024, so that you’ll pay both £4.99, £8.99 or £12.99 a month, whereas Apple TV+ also increased monthly costs (once more) to £8.99 a month.

And there are others like Paramount+ (£4.99 with adverts, £7.99 or £10.99 a month with out adverts), whilst you will pay for further content material and no adverts through ITVx (£5.99 a month).

So on the entire, although there are increasingly of those streaming providers, they usually all maintain getting costlier, they are often cheaper alternate options (if you happen to get them on their very own, or lower the value you pay through provides or go for the essential variations with adverts).

That’s a persuasive argument for ditching the Licence Charge so far as value goes. Nonetheless, I consider that so long as you’ll be able to afford it, you get extra to your cash from the BBC than the premium providers.

Extra on different streaming providers

What the Licence Charge pays for

The factor folks ranting towards the TV Licence are likely to overlook is the cash doesn’t simply pay for BBC TV drama, documentaries and comedy. It additionally funds BBC information, sport, CBBC, radio and on-line.

And it’s these areas which I feel make that £14.54 all of a sudden really feel like actually good worth. So I’ve damaged down this value between all of the issues it pays for and calculated beneath what I feel is a good consultant worth for every BBC service.

These figures are only for me – you should have your individual views on what you employ and don’t use.

BBC TV & iPlayer

My value: £7 a month / £84 a yr

So think about the drama, comedy, leisure and factual a part of the payment was the identical value as the opposite streaming providers at £10. Oh and iPlayer.

It doesn’t matter what you would possibly instinctively assume if you happen to simply flip the TV on and watch one thing reside, I feel if you happen to actually checked out what’s on, you’d discover loads of high quality new and outdated content material to maintain you going all year long. We’ve really bought an extended checklist of reveals we wish to watch and never bought round to, and add no less than a pair each month.

However let’s say it’s £7, representing half of the cash you pay. That’s even cheaper than a lot of the different choices (and no adverts). I feel many individuals would assume that’s fairly honest for what you get.

And don’t overlook this contains funding the manufacturing of BBC programmes you would possibly really find yourself watching on a service like Netflix! With out the licence payment they wouldn’t be made within the first place.

BBC Radio & BBC Sounds

My value: £3.50 a month / £42 a yr

I’ve bought a cool digital radio for the bathe. There are 4 presets, and we’ve bought BBC 5Live, BBC 6 Music, Coronary heart 80s and Absolute 90s saved. My god, I hate the adverts on the latter two, making BBC radio important.

And through the first lockdown specifically I used to be mainlining 5Live – a improbable instance of nationwide broadcasting once we wanted it most.

BBC podcasts are not simply radio reveals put on-line. Many are commissioned only for BBC Sounds, together with the wonderful documentary Vishal (produced by my buddy Satiyesh) and music reveals. Plus it’s a good way to make amends for radio you may need missed.

I do take heed to a number of Spotify, and there are some nice podcasts on the market (have you ever listened to our Cash Chats present but?). So it’s doable to get good high quality music and speech content material (although you have to pay to keep away from fixed adverts).

Nonetheless, given the selection between paying for Spotify (at £11.99 a month) and paying for BBC Radio, I’d decide BBC Radio. And at an equal value of £3.50 a month I feel that’s a cut price.

BBC Sport

My value: £2 a month / £24 a yr

For those who needed to pay £2 a month, that’s simply £24 a yr, to get Wimbledon, Match of the Day, 6 Nations and smaller sports activities like snooker, athletics and so forth, plus each few years the World Cup, the Olympics and Commonwealth video games, I feel most individuals would assume it’s improbable worth – particularly when in comparison with the £14.99 value to observe Sky Sports activities for someday on NOW TV.

BBC Information

My value £1 a month / £12 a yr

That is definitely an space the place my view on worth for cash has modified (although a number of that’s right down to price range cuts enforced by the federal government by frozen or beneath inflation will increase to the licence payment).

I’ll now go to the Guardian first for my information updates, slightly than the BBC Information web site, and even take heed to podcasts just like the Information Brokers over Newscast.

Nonetheless, BBC Information is the primary place I’ll go for breaking information. And if you happen to’ve ever watched information within the USA, you’ll respect not solely simply how good BBC Information is, however the way it makes certain the opposite information networks elevate their requirements.

I’d say it’s properly price paying £1 a month for this – that’s simply 3.3p a day.

CBeebies and CBBC

My value: 75p a month / £9 a yr

Let’s say it prices 75p a month (£9 a yr) to have these channels – and I don’t even have youngsters! For those who do you in all probability would say it’s price paying extra to get this important content material.

I grew up watching reveals like Going Reside, Blue Peter and so forth. And extra just lately my niece and nephew cherished programmes like Justin’s Home and Operation Ouch.

And through the pandemic the BBC actually raised the bar in reveals to assist with homeschooling.

Sure, you will get different youngsters reveals through Sky however these are largely low cost abroad imports and I don’t assume they’ve the identical schooling and high quality you get from the BBC.

BBC On-line

My value: 0p a month

In earlier years, I’d allocate 50p a month for this, because it was the place I’d go to verify the climate, the information, the soccer scores and extra? Now I hardly go to it aside from to play Sounds or iPlayer, which I’ve lined in different sections. So lets deal with it as one thing you get as a part of your ‘contribution’ to information, sports activities and so on.

Different stuff

My value: 29p a month / £3.50 a yr

Then there’s loads of stuff we don’t see, however do profit from.

There are know-how developments which make a giant distinction to how we watch TV (corresponding to iPlayer) and the way different programmes are made by different folks (just like the cameras constructed for Blue Planet).

We would not take heed to the World Service, but it surely does a fab job of selling the UK all over the world and supporting nations that basically want it – whereas additionally constructing ‘mushy energy’ throughout the globe.

Oh, and the licence payment can also be used to ensure everybody within the UK will get broadband, particularly rural areas. It did the identical for digital TV.

Proper, I’ll shut up now. However let’s say we pay 29p a month in the direction of all this (a complete of £3.50 a yr).

Cash properly spent or a waste of money?

So simply to shortly summarise, for me the £14.54 month-to-month TV licence value may very well be damaged down like this.

  • £7 a month for all of the drama, comedy and documentaries (£84 a yr)
  • £3.50 a month for all of the radio (£42 a yr)
  • £2 a month for sport (£24 a yr)
  • £1 a month for information protection (£12 a yr)
  • 75p a month for youngsters’s TV (£9 a yr)
  • 29p a month for the improvements (£3.50 a yr)
  • plus all of the BBC web sites

I nonetheless assume the licence payment is a extremely good funding. In actual fact I feel these values I’ve assigned are too in all probability too low for what you get, particularly within the instances of sport and radio. 

Sure I’ve made up the values above (in actuality the break up is completely different), and there will definitely be elements you don’t use in any respect. Nevertheless it’d be simple to justify assigning increased values to those you employ and fewer to these you don’t – for instance if you happen to’ve bought youngsters you’d in all probability assume £2 a month for CBBC is nice worth.

And if you happen to contemplate what you would possibly pay for all of the separate elements at industrial charges, even if you happen to solely selected one or two, you’d probably pay simply as a lot. 

Ought to the Licence Charge be scrapped?

Andy’s evaluation

I do recognise there’s rising resentment in some elements of the general public, notably by individuals who merely don’t watch any BBC (or reside) TV in any respect. I’ll typically see posts in cash saving Fb teams about scrapping it, with the vast majority of the a whole bunch of feedback in favour of ditching it.

Nonetheless, a lot of what I see in these conversations is misinformed, and fuelled by media just like the Mail and Murdoch’s Information UK (The Instances and The Solar), and the earlier Conservative authorities, who all have vested curiosity in eliminating the BBC.

So I hope this text might help steadiness a number of the arguments (I discover it irritating that the BBC’s personal impartiality insurance policies stop it from delivering any respectable defence).

Just like the NHS, we’d actually miss the BBC if it was gone. Irrespective of what number of wonderful US imports can be found to observe, there’s nonetheless improbable TV made within the UK, and a giant a part of it’s right down to the BBC. Even if you happen to nonetheless assume it’s an excessive amount of cash, I do assume that it’s vital we combat to maintain the BBC impartial and robust.

Alternate options

If folks genuinely don’t use any BBC service then I do assume it’s unfair that they need to be compelled to pay for it. It appears one thing actually does want to alter. However what?

It’s actually powerful to discover a answer that would shield what the BBC stands for and allow it to supply the providers it does to the usual it does with out the total payment.

A number of folks speak about a subscription technique, as you will have with Netflix. It’s definitely an possibility, however folks don’t realise that Netflix makes very little profit, and hardly pays any tax in the UK.

I additionally assume there’s a likelihood that for plenty of folks the price will go up to be able to get all of the providers. A report from the BBC stated it’d probably value £37 a month to get all the services.

That doesn’t sound too far off. The decide and blend method to Sky through NOW TV can prevent money versus a traditional Sky subscription, however in order for you Leisure, Cinema, Children and Sport you’re nonetheless paying £60 a month. 

An advert funded mannequin is another choice, however ITV, Channel 4 and Channel 5 aren’t swimming in money, and including the BBC into the market will imply there’s much less cash to go round. So we’ll see all of the free-to-air channels undergo.

And we may see the BBC outbid for a number of the vital huge occasions and programmes by the likes of Amazon – forcing folks to shell out extra.

I think about it’d must be some type of blended mannequin. Maybe some providers funded by a diminished licence payment with others subscription solely.

Tips on how to cease paying the Licence Charge

For those who genuinely don’t watch any BBC TV, reckon you may do with out, or don’t really feel it is best to pay for the opposite BBC providers then you’ll be able to cancel your licence.

You’ll be able to inform TV Licensing that you simply don’t require a licence here. Simply ensure you don’t watch any reside TV or use iPlayer.