Four in 10 people are unaware of what the TV licence pays for, meaning some might find they may not need one.

With a full TV licence now costing £169.50 after rising with inflation in April, it can significantly add to annual expenses – making it vital to check whether it’s necessary, especially as incomes remain stretched.

The licence is mandatory for anyone who streams live TV or uses BBC iPlayer, with failure to pay risking a substantial fine. However, earlier this year, a nationally representative survey of 2,000 carried out by FCA-regulated credit broker Viva Money found a staggering 43% of UK adults don’t fully understand what the TV licence covers.

Those who primarily watch platforms like Netflix, Disney+, or catch-up services (excluding BBC iPlayer) may find they don’t need a licence at all.

This could allow them to cancel their payment and potentially claim a refund.

When do I need a TV licence?

All households in the UK will need a TV licence if they watch or record TV programmes as they’re broadcast. This rule accounts for all programmes on any channel, from soaps and documentaries to movies.

Even if these programmes are broadcast live on a computer, laptop, tablet or phone, rather than a TV, people must have a licence to watch them. Additionally, households require a licence if they download or watch programmes broadcast on BBC

The licence also covers online TV services such as ITV Hub, All 4, Amazon Prime Video, Now TV or Sky Go. However, unlike with BBC iPlayer, a licence is not needed if a person only ever watches catch-up programmes on these TV services.

If a household finds themselves only watching catch-up TV (not including BBC iPlayer), they won’t need a TV licence – as long as they’re not using the TV services to watch anything live.

Households also don’t need a TV licence to watch certain streaming services, like Netflix, YouTube or Disney+.

For those considering cancelling their TV licence, it’s vital to be sure everyone in the same household follows the rules.

How to cancel a TV licence

If a household is certain that they no longer need a TV licence, they can inform TV Licensing by completing the refund and cancellation request form.

Tv Licensing may then pay a visit to the address to confirm if the decision is correct. It says these inspections find one in five households do end up needing one.

If a licence is needed, the household will have to pay the full licence fee and may risk prosecution and a fine.

Fines vary depending on location and can see people in UK mainland face a penalty charge of up to £1,000, while those in Guernsey and Jersey could face fines of up to £2,000 and £500 respectively.

How to request a TV licence refund

Britons can request a TV licence refund if they won’t need their licence again before it expires, and they have at least one complete month left on it.

The main circumstances in which refunds are typically considered include:

1. TV receiving equipment is no longer in use
2. The address is covered by another licence
3. The TV Licence was bought in error
4. A replacement TV Licence has been bought
5. Blind concession refunds
6. Refunds in consequence of a free TV Licence application
7. The death of the licence holder.

According to the TV Licensing website, Britons can apply for a refund up to 14 days before they no longer need their TV licence.

If the licence has already expired, they may still be eligible for a refund, provided less than two years have passed since the expiry date.

To apply, individuals must complete a short form and may need to provide evidence showing they no longer require the licence.

TV Licensing will review the application, determine eligibility, and calculate the refund amount, which is typically based on full unused months. Refunds are issued via cheque or direct deposit.

To check their licence expiry date, Britons can sign into their online account.

Some people may also be able to apply for a discount on their TV licences, ranging between 50 percent and even 100 percent. Find out more about these, here.