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Millions of households face a TV Licence hike in the new year. The annual rate is set to climb above £180 in 2026, adding to cost-of-living pressure for families. The inflation rate means the fee is expected to rise by almost £7 in the spring, up from the current rate of £174.50. READ MORE: HMRC deducting £300 from state pensioners' bank accounts from Saturday Get our best money saving tips and hacks by signing up to our newsletter The rate for 2026 is expected to be linked to the annual inflation figure in the year to September, which was 3.8%, reports the Sun . That will take the total cost to just over £181, with the exact rate due to be confirmed later in November. It's likely to reopen the conversation about the future of the Licence fee and whether it provides value for money. More households are ditching the traditional Licence fee by the year, favouring streaming services like Netflix and Amazon instead. Last year alone 300,000 households stopped paying. If the latest rise is confirmed, it will be the first time the cost of a TV Licence has passed £175. The annual cost is linked to inflation until at least spring 2028 as part of a funding deal that was agreed in 2022. High inflation over the last few years has pushed up the cost that households must pay to watch live TV. The culture secretary Lisa Nandy said suggested there could be changes to how the BBC is funded once the latest agreement ends. To get breaking news emailed to you, sign up here , it's free.
