The BBC TV licence, which costs £180 a year for a colour licence following April's price rise, is required to watch any form of live TV in the UK or to use BBC iPlayer. According to TV Licensing, the licence is the legal responsibility of the BBC and is used to fund it. While a licence is not needed by those who only watch on-demand streaming services such as Netflix or Amazon and never watch live programmes, most households still require one.

Who Pays Less

TV Licensing notes there are several discounts to the standard fee. For those who only use a black and white TV, the licence costs £60.50. People who are blind or severely sight-impaired can get a 50% discount, taking the colour fee down to £90. People aged over 75 receive the licence for free if they are in receipt of Pension Credit, a Department for Work and Pensions benefit. Those in sheltered accommodation or care homes pay £7.50. Birmingham Live adds that the free TV Licence scheme for people aged 75 and over ended on 31 July 2020, but that claimers of Pension Credit remain eligible for a free licence.

Seven Refund Scenarios

TV Licensing lists seven key scenarios under which a full or partial refund may be claimed, and adds that refunds are normally calculated in complete months. As reported by the Bristol Post, Hull Daily Mail, and Somerset Live, these are the reasons given on the TV Licensing website:

  1. TV receiving equipment no longer in use: If the licence holder ceases to use TV receiving equipment at their address, they may claim a refund, provided they do not watch TV channels on any service, watch live TV on streaming services, or use BBC iPlayer, including recording and downloading on any device. If the licence is needed again before the expiry date, no refund will be given.
  1. Address covered by another licence: A refund can be claimed if the licence holder moves to a different address where they are covered by someone else's licence, such as a parents' or partner's address.
  1. Licence bought in error: Refunds may be available for licences bought in error, including up to six years' worth if the purchase was due to TV Licensing advice.
  1. Replacement licence: A refund can be given when a licence is replaced, such as moving between black and white and colour, or to an ARC concessionary TV licence.
  1. Blind concession: Blind concession refunds of up to half the licence fee may be backdated to 1 April 2000, subject to evidence requirements.
  1. Free TV licence application: Refunds can be given in consequence of a free TV licence application for complete months remaining on the current licence.
  1. Death of the licence holder: Refunds due to the death of the licence holder may be claimed for any complete months left on the licence and may be paid to the estate.

Legal Obligations and Exemptions

Birmingham Live reports that it is illegal to watch BBC iPlayer or to watch or record live TV from any channel without a TV licence, and that those found doing so can be taken to court and fined up to £1,000. The same outlet notes that not everybody needs to pay for a TV licence: if you don't watch any live TV or BBC iPlayer, you don't need one. Martin Lewis, quoted by Birmingham Live, explains that "you only need a TV licence if you watch or record TV as it's being broadcast or use iPlayer – if you only ever use other catch-up sites, you don't need one." A rule that came into force in September 2016 means a licence is needed even for catch-up use of BBC iPlayer. No licence is required for Netflix or Amazon Prime Video if watching only on-demand content, though a licence is needed for live sports or live add-on Prime Video Channels, as reported by Birmingham Live.