A LITTLE-known TV Licence trick could help thousands of households save up to £196 a year before the upcoming price hike.
From April 1 this year, the cost of a standard colour TV Licence will increase from £169.50 to £174.50 a year, while a black and white licence will go up from £57 to £58.50.
But some people might not need to pay for a licence at all, which could mean huge savings.
TV and broadband expert Sabrina Hoque, from Uswitch, explained: “A TV licence costs £169.50 a year, so checking whether you have to pay this is a no-brainer.
“If you are only using your TV for viewing on-demand content, such as streaming via Netflix, Apple TV or Amazon Prime, then you don’t need to pay for a TV licence.
“You also don’t need to pay for a TV licence if you are over 75 and receiving Pension Credit,” she added.
Under current rules, certain groups are exempt, including those aged 75 and over who receive Pension Credit.
You can check your eligibility and apply via the TV Licensing website or by calling 0300 790 6117.
What is Pension Credit?
Pension Credit is a benefit for people over the State Pension age who are on a low income.
It tops up their weekly earnings to a minimum of £218.15 for single pensioners and £332.95 for couples from April 2025.
Despite this support, latest government figures show an estimated 850,000 households who qualify aren’t currently claiming it – although recent changes to Winter Fuel Payment is thought to have boosted numbers.
There are two parts to Pension Credit:
- Guarantee Credit: Ensures a minimum income level of £218.15 a week for individuals and £332.95 for couples.
- Savings Credit: Provides extra payments of up to £17.01 a week for singles and £19.04 for couples if they have savings or additional pensions.
Additional support is also available for those with disabilities, caring responsibilities, or housing costs.
To be eligible, you must live in England, Scotland or Wales and have reached state pension age, but you must also have a low enough income that it needs topping up with Pension Credit.
Your income is calculated based on your state pension allowance, other pensions, your employment and self-employment earnings and some social security benefits, including Carer’s Allowance.
But not all benefits are counted as income, including:
- Adult Disability Payment
- Attendance Allowance
- Christmas Bonus
- Child Benefit
- Disability Living Allowance
- Personal Independence Payment
- social fund payments like Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction
How to apply for Pension Credit
You can apply up to four months before reaching State Pension age.
If you’ve already passed this age, you can still apply, but claims can only be backdated by three months.
You’ll need your National Insurance number, details about your income, savings, and investments at hand.
Apply online at the government website, by phone on 0800 991 234, or by post to The Pension Service 8, Post Handling Site B
Wolverhampton WV99 1AN.
People claiming Pension Credit can get other benefits such as free NHS dental care and check ups, free sight tests, cold weather payments and winter fuel payments.
That’s despite it being worth an average of £3,900 per year.
More pensioners applied for Pension Credit in recent months after the Labour government said it would only be continuing to provide winter fuel payments for those receiving certain benefits.
Check out our full guide to see if you’re eligible and how to claim.
More ways to save on a TV license
For those who don’t qualify for Pension credit, another effective way is bundling broadband and TV subscriptions, a common offer from many providers.
Sabrina said: “Many broadband providers offer ‘bundles’, where you can combine a broadband and TV subscription.
“For example, Sky offers a broadband and TV bundle for £35 per month combined, whereas buying these two subscriptions separately would cost £40 per month, saving up to up to £120 across a 24-month contract.
“The savings available from ‘bundling’ can vary based on the service and length of contract, but if you’re out of contract for TV or broadband, bundling these two services together is a simple way to get a better deal on both.
“For those who are still required to pay for a TV license, the next best way to save without losing access to your favourite shows is by checking what perks are offered by your provider.”
Uswitch also recommends assessing in-contact perks from your mobile or broadband provider.
Sabrina added: “An under-utilised way to reduce the cost of accessing streaming services is via in-contract perks from your mobile or broadband provider.”
“Uswitch’s recent analysis of perks from the UK’s top providers showed that some providers offer free or heavily discounted access to streaming services including Amazon Prime or Netflix.”
How to watch TV legally without paying for a licence
You can legally use the following services without a TV Licence as long as you aren’t using them to watch or stream live TV:
- On demand TV – such as catch-up TV and on demand previews, which are available through services including ITV Player, All 4, My5, BT Vision/BT TV, Virgin Media, Sky Go, Now TV, Apple TV, Chromecast, Roku and Amazon Fire TV. You can’t watch or download programmes on BBC iPlayer without a TV licence.
- On demand movies – from services such as Sky, Virgin Media, BT Vision, Netflix and Amazon Instant Video.
- Recorded films and programmes – either via DVD or Blu-ray, or downloaded from the internet.
- YouTube – Video clips that aren’t live through services such as YouTube.
