How to decide out of BBC TV licence as numbers plummet by 540,000 in a 12 months

The number of BBC TV licences has dropped by more than half a million in a single year, according to the corporation’s annual report, as households no longer watching live TV or BBC iPlayer can declare they no longer need one

The number of BBC TV licences has plummeted by over half a million in just one year, as revealed in the corporation’s annual report. By the close of the 2025/2026 financial year, there were 23.3 million active licences, marking a decrease of 540,000.

This decline was attributed to fewer households needing a TV licence due to not viewing licensable content. The total number of households declaring they didn’t require a licence rose by 62,000, reaching a sum of 3.7 million.

The preceding annual report indicated there were 23.8 million active licences. Not only has there been a drop of more than half a million year on year, but the figure has also fallen by over 2.5 million since the beginning of the decade when it stood at 25.9 million.

BBC chief financial officer Berangere Michel stated: “We can see that the large majority of the reason for the decline is people… not consuming licensable content. That is a trend that I don’t see changing back. In fact, I see it accelerating, and that is one of the reasons why we would like a reform of the funding.”

Director general Matt Brittin said: “This is a moment of real jeopardy, not just for the BBC but for public service broadcasting and the UK as a whole.”, reports Yorkshire Live.

Now, fewer than 80% of households pay the licence fee. You can officially opt out of needing a TV Licence online. The process is as straightforward as answering six yes or no questions.

You are legally required to have a TV Licence if you:

• Watch or record live TV on any channel. This applies to any television service (like Freeview, Sky, Virgin Media) and any live streaming service (like watching live broadcasts on ITVX, Channel 4, YouTube, Amazon Prime Video, or Sky Go).
• Use BBC iPlayer. You need a licence for anything you watch or download on BBC iPlayer, whether it is a live broadcast, a catch-up episode, or an on-demand box set.

Many individuals believe that a licence is only required for BBC channels. This is a misconception. A licence is legally required if you watch live broadcasts.

When You DO NOT Need a TV Licence:

• On-demand / Catch-up services (excluding BBC iPlayer). You are fine to watch on-demand content on ITVX, Channel 4, Channel 5, etc., as long as it isn’t a live stream.
• Subscription streaming apps like Netflix, Disney+, Amazon Prime Video, or Apple TV+ (again, for on-demand movies/shows only).
• On-demand videos on websites like YouTube or TikTok.
• Physical media like DVDs or Blu-rays.

If you genuinely never watch live TV or use BBC iPlayer, you can visit the official TV Licensing website and complete a “No Licence Needed” declaration to halt the reminder letters. A statement from TV Licensing states: “If you tell us you don’t need a licence we may visit you to check. If we then find that you have been watching, recording or streaming programmes illegally, you risk prosecution and a fine of up to £1,000 (£2,000 in Guernsey) plus any legal costs and compensation you may be ordered to pay.”