In the United Kingdom and the British Islands, any household watching or recording television transmissions at the same time they are being broadcast is required by law to hold a television licence. This applies regardless of transmission method, including terrestrial, satellite, cable, or for BBC iPlayer internet streaming. The television licence is the instrument used to raise revenue to fund the BBC and S4C.

Businesses, hospitals, schools and a range of other organisations are also required by law to hold television licences to watch and record live TV broadcasts.^[1] The licence, originally a radio licence, was introduced in November 1923 using powers under the Wireless Telegraphy Act 1904, and cost 10 shillings per annum. The licence was extended to televisions at a cost of £2 in June 1946. The radio part was abolished in February 1971.^[2] A television licence is also required to receive video on demand programme services provided by the BBC via its iPlayer service.

Since 1 April 2024, the annual cost has been £169.50 for a colour licence and £57.00 for a black and white licence. Income from the licence is primarily used to fund the television, radio and online services of the BBC. The total income from licence fees was £3.83 billion in 2017–18,^[3] of which £655.3 million or 17.1% was provided by the government through concessions for those over the age of 75 (this subsidy has now been phased out). Thus, the licence fee made up the bulk (75.7%) of the BBC's total income of £5.0627 billion in 2017–2018.^[3]

In May 2016, the government's white paper announced that the licence fee would rise with inflation for the first five years of the Charter period, from 1 April 2017.

The number of licences issued peaked at 26.2m in 2018. As of 2022-2023, there were over 24m active TV licences.^[4]

Operation of the licensing system

Licence fee collection and use

The TV licence fee is collected by the BBC and primarily used to fund the radio, television and online services of the BBC itself. Licence fee collection is the responsibility of the BBC's Finance and Business division.^[5]

Although the money is raised for its own use and collected by the BBC itself, the BBC does not directly use the collected fees. The money received is first paid into the government's Consolidated Fund. It is subsequently included in the 'vote' for the Department of Culture, Media and Sport in that year's Appropriation Act, and passed back to the BBC for the running of the BBC's own services (free from commercial advertisements). The money also finances programming for S4C and the BBC World Service, and included the running costs of BBC Monitoring at Caversham until it was relocated to London and the property sold in May 2018.

Legal framework

In 1991, the BBC assumed the role of TV licensing authority with responsibility for the collection and enforcement of the licence fee.^[6]

The BBC is authorised by the Communications Act 2003 to collect and enforce the TV licence fee. Section 363 of the act makes it against the law to install or use a television receiver to watch or record any television programmes as they are being broadcast without a TV licence. Section 365 of the same act requires the payment of the TV licence fee to the BBC.^[6]

The licence fee is formally set by the Secretary of State for Culture, Media and Sport by the use of statutory instruments. The relevant statutory instruments are the Communications (Television Licensing) Regulations 2004^[7] and amendments since that time such as the Communications (Television Licensing) (Amendment) Regulations 2010.^[8] As well as prescribing the fees, the regulations also define "television receiver" for the purposes of the law.

For people living in the Channel Islands and Isle of Man, TV licensing law is extended to their areas by Orders in Council made by agreement with their own governments.^[9][10][11]

As part of its enforcement regime, the BBC is authorised to carry out surveillance using powers defined by the Regulation of Investigatory Powers Act 2000 and the Regulation of Investigatory Powers (British Broadcasting Corporation) Order 2001. The BBC is permitted by the order to use surveillance equipment to detect unlicensed use of television receivers.^[12]

As the public body responsible for issuing TV licences, licensing information held by the BBC and on the BBC's behalf by TV licensing contractors is subject to the Freedom of Information Act 2000. The BBC withholds some information on licence enforcement using exemptions under the Act; in particular, under section 31, which permits the withholding of information on crime prevention grounds and under section 43(2), which allows the BBC to retain information judged commercially sensitive.^[13]

Reclassification as a tax

In January 2006, the Office for National Statistics (ONS) changed the classification of the licence fee from a service charge to a tax.^[14] Explaining the change, the ONS said: "in line with the definition of a tax, the licence fee is a compulsory payment which is not paid solely for access to BBC services. A licence is required to receive ITV, Channel 4, Channel 5, satellite, or cable". A briefing paper from the House of Commons Library described the licence fee as a hypothecated tax (i.e. one raised for a particular defined purpose).^[15]

TV Licensing Management Team

The TV Licence Management Team, which is part of the Finance and Business division of the BBC, oversees the TV Licensing system.^[16] The TV Licence Management Team is based in the BBC buildings at White City Place in London. The majority of TV licensing administration and enforcement activities are carried out under contract by private companies. The TV Licence Management Team oversees the performance of the contractors.

TV Licensing brand

The BBC pursues its licence fee collection and enforcement under the trading name TV Licensing, but contracts much of the task to commercial organisations.^[17] TV Licensing is a trademark of the BBC used under licence by companies contracted by the BBC that administer the television licensing system.^[17] Concerning the relationship of the BBC brand with the TV Licensing brand, the BBC's position is stated as: "The TV Licensing brand is separate from the BBC brand. No link between the two brands should be made in customer facing communications, in particular, use of the BBC name and logo".^[18] However, it also states that the rules for internal communications and communications with suppliers are different: "the name BBC TV Licensing may also be used within department names or job titles for BBC employees".^[18]

TV Licensing contractors and subcontractors

Capita

A major contractor is Capita.^[19] Capita is responsible for the administration and enforcement of the TV licence fee.^[17][20]

It is expected that Capita will earn £1.10bn – £1.55bn from its contract with the BBC if it runs its maximum 15 years from July 2012.^[5]

The services carried out by Capita on behalf of the BBC include dealing with TV licence queries, processing TV licence applications and payments and the maintenance of the licence database.^[21] Enforcement tasks include visiting addresses, identifying people watching TV without a licence, taking statements, and achieving prosecutions of TV licence evaders.^[22][23][24] TV Licensing debt collection is carried out by Akinika,^[25] which is a debt collection agency owned by Capita.^[26]

Capita's TV Licensing headquarters is at India Mill, in Darwen, Lancashire.^[27] Capita employs a number of subcontractors for part of its TV Licensing operations – one important one being Computer Sciences Corporation which provides and modernises the required IT infrastructure.^[5] Since 2004, Capita has undertaken a proportion of TV licensing administration at locations outside of the UK and "has progressively increased the amount of work processed overseas each year".^[5] However, as of 2013,^[update] Capita has not set up any overseas call centres to carry out TV Licensing work and it would need the BBC's permission to do so in the future.^[5] Some of Capita's TV Licensing work is carried out in Mumbai, India^[28] but after reportage in Panorama about scammers from India, the Indian office of Capita was closed permanently.

Proximity London Limited

Marketing and printing services, including reminder letters and licence distribution, are carried out by Proximity London Limited.^[29]

Havas Media

Media services are contracted to Havas Media.^[16]

Other contractors

Other contractors involved in TV Licensing include PayPoint which provides over-the-counter services in the UK, and the post offices which provide the same services in the Isle of Man and Channel Islands.^[5] Also involved are: AMV BBDO^[29] which provides advertising services, and Fishburn Communications^[30] which carries out public relations.

Duration of a TV licence

A TV licence, once issued, is normally valid for a maximum of 12 months. The period of its validity depends on the exact day of the month it is purchased; this is because TV licences always expire at the end of a calendar month. If a licence were to be obtained in September 2014, for example, it would expire on 31 August 2015. Thus the period of validity would vary between 11 and 12 months depending how early in the month it was bought.^[31] If an existing licence is renewed on time, the new licence will last the full 12 months.

The BBC sometimes issues 'short dated' licences in situations when a licence is renewed after the expiry date of the previous licence. The BBC does this as it assumes that TV was being watched in the interim period between expiry and renewal. Short dated licences are set to expire 12 months after the previous expiry date.^[32]

If a TV licence is no longer needed for an address it is possible to cancel a licence and apply for a partial refund.^[33] The amount refunded will depend on the time left to the expiry date. Normally only full quarters (that is three consecutive calendar months) of unexpired licence period are refunded.^[34]

The BBC may also revoke a licence under certain circumstances.^[34]

Cost of a licence

The level of the fee is decided following periodic negotiations between the UK Government and the BBC.^[35] Before 1988, increases in the licence fee happened at irregular intervals, sometimes a few years passing between changes. From 1988 to 2010, the licence fee was increased annually each April.^[36] Between April 2010 and April 2017 the licence fee remained constant at £145.50 per year.^[37] As of 1 April 2021, it costs £159 for a colour licence and £53.50 for a black and white TV licence.

Payment methods

The BBC allows the following forms of payment of the licence fee:^[38]

• Direct debit. Payments may be made annually, quarterly or monthly.
• Debit or credit card. Annual payment.
• PayPoint. Annual payments may be made at PayPoint outlets (usually situated in shops) by cash or debit card.
• TV Licensing payment card. Holders of this card will have a payment plan showing when and how much they need to pay. Payments may be made weekly or monthly at PayPoint outlets. Payments may also be made online, by phone or by text message (with credit or debit card).
• TV Licensing savings card. This is a way for a licence fee holder to save for a subsequent licence. If enough money for the new licence is saved up, a new licence is sent automatically. Otherwise the balance has to be paid for.
• Cheque and postal orders. Annual payments may be made by post by these methods.
• BACS electronic transfer. Annual payments for renewal licences only.

The payment methods mean that the licence fee is paid for either completely or partially in advance. Annual payments require complete payment in advance. For monthly direct debit, a new licence is paid off in 6 monthly instalments of just over £24 a month. Renewal licences are paid for in 12 monthly instalments starting 6 months before expiry of the licence in force i.e. starting 6 months before the renewal date.^[38] Quarterly payments made using direct debit carry an additional cost of £5.00 per year, or £1.25 a quarter, which is included in the licence fee total. This addition is described as "a small charge" in the generic letter issued by TV Licensing to those paying by direct debit, and on the TV Licensing website it is justified with: "By paying quarterly the majority of your licence is paid for as you use it. This differs from our other instalment schemes, where at least half of the licence fee is collected in advance. As a result, quarterly payments incur a small premium of £1.25 per quarter which is included in your payment."^[38] Typically, direct debit schemes in the UK for major utilities or publicly provided services operate in a reverse way, granting a discount to direct debit payers.

In the Channel Islands and the Isle of Man, over the counter services are provided by the Post Office rather than by PayPoint outlets.^[39]

Concessions

Over 75s

Between November 2000 and April 2018, TV licences were provided to people over the age of 75, through full funding by central government.^[40] This concession covered the whole household, so that even if just one member of the household was over 75, then a free TV licence could be applied for to cover all the residents.^[41] Following a 2016 funding agreement between the Conservative government and the BBC, this funding was phased out between April 2018 and April 2020, after which time no further government funding was available for the scheme:^[42] Free TV licences based solely on age ended in August 2020 (previously planned to be June 2020 but extended as of the Coronavirus pandemic).^[40] It has been estimated that if full funding had been maintained, it would have contributed £745m to the BBC's 2020–21 budget.^[43] The BBC held a public consultation in November 2018 to decide whether the concession to the over-75s should continue after 2020 and, if so, in what form.^[44] The response to the BBC's questionnaire, 48% were in favour of retaining the existing concessionary system, 37% preferred reforming the concession and 17% preferred the option of abolition of the concession.^[45]

The BBC discontinued the full concession, but continued to offer free licences on a means-tested basis;^[46] from August 2020, most over 75s were required to pay the full licence fee, but households where one person receives a pension credit benefit will continue to be eligible for a free licence.^[47]

Crown dependencies

On the Isle of Man, a free TV licence scheme was funded by the Isle of Man Department of Social Care.^[48] The BBC maintained the free licence scheme for all over 75s until 31 December 2020. ^[49][50] From 1 January 2021, this was replaced by a scheme whereby the BBC funds free TV licences for the 500 over 75s in receipt of Income Support, and the Isle of Man Government is funding free TV licences for 2021 for the remaining 4,500 at a cost of around £800,000.^{[51][52][53][54]}

There are schemes for elderly residents of the Channel Islands, but they vary in detail and eligibility.

• Residents of Guernsey and Alderney who are over 75 and are in receipt of Income Support are entitled to a free television licence funded by the BBC, whereas those under 75 but over pensionable age have a free licence funded by the States of Guernsey.^[52][55][54] Residents of Sark who are over the age of 75 are entitled to a free TV licence if they are receiving financial support from the Procureur des Pauvres.^[52][55][54]
• On the island of Jersey, concessionary licences continue to be available on a means-tested basis under the Social Security (Television Licence Benefit) (Jersey) Regulations 2011, but are now funded by the BBC rather than the Government of Jersey.^[52][56][54]

Blind or severely sight impaired concessions

Licences are half price for the legally blind.^[57] To qualify for the concession, a blind or severely sight-impaired person must apply to the TV Licensing Blind Concession Group with proof of impairment, either a copy of the document of blind registration or a certificate from an ophthalmologist.^[48] The concessionary TV licence covers TV use by the whole household.

Residential care homes

Those aged over 60 and in residential care homes (including nursing homes, public-sector sheltered housing and almshouses) qualify for Accommodation for Residential Care (ARC) licences for £7.50 a year.

Total licence sales

TV licence sales figures were quoted by the BBC to be 25.562 million in the year 2014–15, including 4.502 million concessionary licences for the over 75s,^[58] which were paid for by the UK government. The equivalent figures for the year 2013–14 were 25.478 million total licences including 4.328 million licences for the over 75s.^[59] In 2014–15, the BBC estimated that there were 26.916 million licensable properties in the UK (defined as premises where live TV was being watched),^[58] indicating that if the BBC estimates are correct, around 95% of properties are correctly licensed. The total income generated from licence fees was £3.8302 billion in 2017–18.^[3]

The vast majority of TV licences are for colour TV. For example, there were 10,461 black and white TV licences in force on 31 August 2014, compared to 25,460,801 colour TV licences. The BBC has also stated that during the financial year 2013–14, a total of 41,483 blind concessionary (half-price) licences were issued in the UK of which 29 were blind concessionary black and white licences.^[60]

Channel Islands

In January 2012, there were 36,261 colour licences in force in Jersey^[61] as compared to 77,480 addresses (residential properties, businesses and other premises) on the TV Licensing database for the island (at the end of December 2011).^[62] This would suggest around 53% of Jersey addresses did not have a TV licence at the beginning of 2012.

The comparable figures for Guernsey are 23,673 licences in force in January 2012^[61] and 40,263 addresses on the database at the end of December 2011.^[62] Thus there were around 41% unlicensed properties in Guernsey at the beginning of 2012.

History

Zdroj:https://en.wikipedia.org?pojem=TV_Licensing
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