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href="/web/20190610121516/https://www.bbc.com/aboutthebbc/governance/licencefee"><div class="ise-c-btn__inner"><span class="ise-c-btn__content gel-long-primer">Licence fee and funding</span></div></a></li><li class="ise-c-navbar__item ise-c-navbar__item--sub"><a class="ise-c-btn ise-c-navbar__link btn--no-hover" href="/web/20190610121516/https://www.bbc.com/aboutthebbc/governance/regulation"><div class="ise-c-btn__inner"><span class="ise-c-btn__content gel-long-primer">Regulation</span></div></a></li><li class="ise-c-navbar__item ise-c-navbar__item--sub"><a class="ise-c-btn ise-c-navbar__link btn--no-hover" href="/web/20190610121516/https://www.bbc.com/aboutthebbc/governance/audit"><div class="ise-c-btn__inner"><span class="ise-c-btn__content gel-long-primer">Audit arrangements</span></div></a></li><li class="ise-c-navbar__item ise-c-navbar__item--sub"><a class="ise-c-btn ise-c-navbar__link btn--no-hover" href="/web/20190610121516/https://www.bbc.com/aboutthebbc/governance/s4c"><div class="ise-c-btn__inner"><span class="ise-c-btn__content gel-long-primer">BBC/S4C strategic agreement</span></div></a></li><li class="ise-c-navbar__item ise-c-navbar__item--sub"><a class="ise-c-btn ise-c-navbar__link btn--no-hover" href="https://web.archive.org/web/20190610121516/http://www.bbc.co.uk/complaints/"><div class="ise-c-btn__inner"><span class="ise-c-btn__content gel-long-primer">Complaints</span></div></a></li></ul></div></div></div></nav></div></header><section class="ise-c-hero"><div class="ise-c-hero-content ise-c-hero-content--image" style="background-image:url(https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/16xn/p06tqgkh.jpg)"><figure class="ise-c-img"><img class="ise-c-img--responsive ise-c-hero-content__image" alt="" src="https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/320xn/p06tqgkh.jpg" srcset="https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/320xn/p06tqgkh.jpg 320w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/384xn/p06tqgkh.jpg 384w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/416xn/p06tqgkh.jpg 416w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/640xn/p06tqgkh.jpg 640w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/720xn/p06tqgkh.jpg 720w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/752xn/p06tqgkh.jpg 752w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/832xn/p06tqgkh.jpg 832w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/1088xn/p06tqgkh.jpg 1088w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/1136xn/p06tqgkh.jpg 1136w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/1248xn/p06tqgkh.jpg 1248w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/1280xn/p06tqgkh.jpg 1280w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/1920xn/p06tqgkh.jpg 1920w"></figure><div class="ise-c-hero-content__wrapper"><div class="ise-c-hero-content__layout"><div class="ise-c-hero-content__content"><h2 id="licencefeeandfunding" class="gel-canon-bold ise-c-hero-content__title ise-u-m__b--0">Licence fee and funding</h2><span class="ise-c-hero-content__synopsis gel-double-pica">The BBC is primarily funded by the licence fee, supplemented by income from our commercial subsidiaries</span></div></div></div></div></section><main class="ise-c-main"><div class="gel-wrap"><div class="gel-layout"><aside class="ise-c-sidenav"><ul class="ise-c-sidenav__body"></ul></aside><article class="ise-l-section gel-layout__item gel-3/4@l"><h2 id="fundingthroughthetvlicence" class="gel-trafalgar-bold ise-l-section-title">Funding through the TV licence</h2><p class="ise-c-text__content gel-body-copy">A standard TV licence is currently 拢154.50</p><p class="ise-c-text__content gel-body-copy">A TV licence is required if you:</p><ul class="ise-c-text__list ise-c-text__content gel-body-copy"><li>watch or record live TV programmes on any channel</li><li>download or watch any BBC programmes on iPlayer - live, catch up or on demand</li></ul><p class="ise-c-text__content gel-body-copy">This applies to any provider you use and any device, including a TV, desktop computer, laptop, mobile phone, tablet, games console, digital box or DVD/VHS recorder.</p><ul class="ise-c-list"><li class="ise-c-list-item"><span class="ise-c-list-item__icon"><svg class="ise-c-icon" alt="test" viewbox="0 0 32 32" version="1.1" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"><path d="M18.5 4.6l-1.7-1.7A9.8 9.8 0 0 0 2.9 16.8l3.4 3.4a9.9 9.9 0 0 0 13.9 0l-3.5-3.5a4.9 4.9 0 0 1-7 0l-3.3-3.4a4.9 4.9 0 0 1 7-7L15.1 8z"></path><path d="M13.4 27.4l1.7 1.7a9.9 9.9 0 0 0 13.9 0 9.7 9.7 0 0 0 .1-13.8l-3.5-3.5a9.9 9.9 0 0 0-13.9 0l3.5 3.5a4.9 4.9 0 0 1 7 0l3.4 3.4a4.9 4.9 0 0 1-7 7L16.9 24z"></path></svg></span><div class="ise-c-list-item__content"><a href="https://web.archive.org/web/20190610121516/https://www.tvlicensing.co.uk/" class="ise-c-list-item__title gel-pica-bold">TV Licensing</a><span class="gel-long-primer">Read more about the TV licence</span></div></li></ul><h2 id="whatthelicencefeepaysfor" class="gel-trafalgar-bold ise-l-section-title">What the licence fee pays for</h2><p class="ise-c-text__content gel-body-copy">The licence fee allows us to provide a wide range of TV, radio and online content, as well as developing new ways to deliver it to you. In addition to funding BBC programmes and services, a proportion of the licence fee contributes to the costs of rolling out broadband to the UK population and funding Welsh Language TV channel S4C and local TV channels.</p><p class="ise-c-text__content gel-body-copy">The licence fee allows the BBC's UK services to remain free of advertisements and independent of shareholder and political interest.</p><h2 id="commercialincome" class="gel-trafalgar-bold ise-l-section-title">Commercial income</h2><p class="ise-c-text__content gel-body-copy">The licence fee is supplemented by income from the activities of our three commercial subsidiaries - BBC Studios, BBC Global News and BBC Studioworks.</p><div class="ise-c-promo-wrapper"><ul class="ise-c-promo-wrapper__body"><li class="ise-c-promo ise-c-promo--wide"><div class="ise-c-promo__content"><a href="/web/20190610121516/https://www.bbc.com/aboutthebbc/whatwedo/commercialservices" class="ise-c-promo__link"><h3 id="commercialservices" class="gel-pica-bold ise-c-promo__title">Commercial services</h3></a><p class="ise-c-promo__summary">Our commercial operations generate income to invest in new programmes and content</p><span class="ise-c-promo__tags">Corporate information</span></div><div class="ise-c-promo__image"><figure class="ise-c-img"><img class="ise-c-img--responsive" alt="" src="https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/320x180/p02kc19q.jpg" srcset="https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/320x180/p02kc19q.jpg 320w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/384x216/p02kc19q.jpg 384w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/416x234/p02kc19q.jpg 416w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/640x360/p02kc19q.jpg 640w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/720x405/p02kc19q.jpg 720w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/752x423/p02kc19q.jpg 752w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/832x468/p02kc19q.jpg 832w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/1088x612/p02kc19q.jpg 1088w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/1136x639/p02kc19q.jpg 1136w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/1248x702/p02kc19q.jpg 1248w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/1280x720/p02kc19q.jpg 1280w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/1920x1080/p02kc19q.jpg 1920w"></figure></div><div class="ise-c-promo__inner"></div></li></ul></div><h2 id="ensuringvalueformoney" class="gel-trafalgar-bold ise-l-section-title">Ensuring value for money</h2><p class="ise-c-text__content gel-body-copy">The way in which we are funded means that we need to ensure that the BBC offers value for money for those who pay for it. This means investing as much money as possible on providing the content and services which you want.</p><p class="ise-c-text__content gel-body-copy">We do this by:</p><ul class="ise-c-text__list ise-c-text__content gel-body-copy"><li><strong>Reduction in overheads</strong><br>94% of the BBC鈥檚 controllable spend this year was focused on content and delivery, just 6% was spent on running the organisation</li><li><strong>Talent spend reduction</strong><br>Our total spend on on-screen and on-air talent has been reduced to 11.1% of our internal spend on content</li><li><strong>Reducing the senior manager paybill</strong><br>The ratio of senior managers to total public service employees is now 1.5% and the paybill for senior managers has reduced by over 拢36 million since 2009</li><li><strong>Making overall cost savings</strong><br>拢160 million of annual savings were delivered during the year 2017-18, taking the cumulative savings to 拢244 million.</li></ul><p class="ise-c-text__content gel-body-copy">In 2017/18 this is how your monthly licence fee was spent:</p><figure class="ise-c-img"><img class="ise-c-img--responsive gel-3/4@l" alt="Graph to show how the monthly licence fee is spent in 2017/18. The monthly licence fee is 拢12.25 per household. Of this the following sums were spent: 拢6.40 on television, 拢2.06 on radio, 拢1.06 on BBC World Service, 拢0.67 on other services and production costs, 拢0.91 on BBC online and 拢1.15 on licence fee collection and pension deficit costs" src="https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/320x180_b/p0749pbz.jpg" srcset="https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/320x180_b/p0749pbz.jpg 320w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/384x216_b/p0749pbz.jpg 384w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/416x234_b/p0749pbz.jpg 416w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/640x360_b/p0749pbz.jpg 640w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/720x405_b/p0749pbz.jpg 720w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/752x423_b/p0749pbz.jpg 752w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/832x468_b/p0749pbz.jpg 832w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/1088x612_b/p0749pbz.jpg 1088w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/1136x639_b/p0749pbz.jpg 1136w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/1248x702_b/p0749pbz.jpg 1248w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/1280x720_b/p0749pbz.jpg 1280w, https://web.archive.org/web/20190610121516im_/https://ichef.bbci.co.uk/images/ic/1920x1080_b/p0749pbz.jpg 1920w"><figcaption class="ise-c-img__caption">How your monthly licence fee is spent</figcaption></figure></article></div></div></main></div></div></div><script id="__NEXT_DATA__" type="application/json">{"dataManager":"[]","props":{"pageProps":{"page":{"metadata":{"control-22":"","metadataTitle":"Licence fee and funding","metadataUrl":"/governance/licencefee","metadataId":"licence-fee","shortSynopsis":"The BBC is primarily funded by the licence fee, supplemented by income from our commercial subsidiaries","siteMetadata":"","isiteSectionDescription":"","showHeaderText":true,"baseUrl":"aboutthebbc","isiteId":"ipages-inside-the-bbc","enableContentList":true,"pageType":"page-standard"},"topImage":{"image":"p06tqgkh","imageType":"","imageUrl":"ichef.bbci.co.uk/images/ic/$recipe/p06tqgkh.jpg","mimeType":"image/jpeg"},"content":{"articleBody":"","contentItem":[{"contentComponent":{"result":{"$":{"xmlns":"https://web.archive.org/web/20190610121516/https://production.bbc.co.uk/isite2/contentreader/xml/result"},"metadata":{"modifiedDateTime":"2019-04-01T09:00:34.226251Z","creationDateTime":"2019-03-27T13:35:56.420947Z","type":"component-text","fileId":"article-licence-fee-funding-text-050219103851","guid":"6f99760b-38c2-4a0a-97fb-40012a8b4965"},"document":{"form":{"$":{"xmlns":"https://web.archive.org/web/20190610121516/https://production.bbc.co.uk/isite2/project/ipages-inside-the-bbc/component-text"},"metadata":{"metadataId":"article-licence-fee-funding-text-050219103851"},"content":{"name":"Licence fee funding text","body":"\u003ch2\u003eFunding through the TV licence\u003c/h2\u003e\n\u003cp\u003eA standard TV licence is currently \u0026pound;154.50\u003c/p\u003e\n\u003cp\u003eA TV licence is required if you:\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003ewatch or record live TV programmes on any channel\u003c/li\u003e\n\u003cli\u003edownload or watch any BBC programmes on iPlayer - 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This means investing as much money as possible on providing the content and services which you want.\u003c/p\u003e\n\u003cp\u003eWe do this by:\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003e\u003cstrong\u003eReduction in overheads\u003c/strong\u003e\u003cbr /\u003e94% of the BBC\u0026rsquo;s controllable spend this year was focused on content and delivery, just 6% was spent on running the organisation\u003c/li\u003e\n\u003cli\u003e\u003cstrong\u003eTalent spend reduction\u003c/strong\u003e\u003cbr /\u003eOur total spend on on-screen and on-air talent has been reduced to 11.1% of our internal spend on content\u003c/li\u003e\n\u003cli\u003e\u003cstrong\u003eReducing the senior manager paybill\u003c/strong\u003e\u003cbr /\u003eThe ratio of senior managers to total public service employees is now 1.5% and the paybill for senior managers has reduced by over \u0026pound;36 million since 2009\u003c/li\u003e\n\u003cli\u003e\u003cstrong\u003eMaking overall cost savings\u003c/strong\u003e\u003cbr /\u003e\u0026pound;160 million of annual savings were delivered during the year 2017-18, taking the cumulative savings to \u0026pound;244 million.\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eIn 2017/18 this is how your monthly licence fee was spent:\u003c/p\u003e"}}}}}},{"contentComponent":{"result":{"$":{"xmlns":"https://web.archive.org/web/20190610121516/https://production.bbc.co.uk/isite2/contentreader/xml/result"},"metadata":{"modifiedDateTime":"2019-03-27T13:35:56.420947Z","creationDateTime":"2019-03-27T13:35:56.420947Z","type":"component-image","fileId":"image-how-your-monthly-licence-fee-is-spent-201718220319114616","guid":"f1578223-a07c-415d-8c8c-6874eae26712"},"document":{"form":{"$":{"xmlns":"https://web.archive.org/web/20190610121516/https://production.bbc.co.uk/isite2/project/ipages-inside-the-bbc/component-image"},"metadata":{"metadataId":"image-how-your-monthly-licence-fee-is-spent-201718220319114616"},"content":{"name":"How your monthly licence fee is spent 2017/18","pid":"p0749pbz","alt":"Graph to show how the monthly licence fee is spent in 2017/18. 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