Broadcaster warns its current funding model is becoming unsustainable as viewers move away from live television and BBC iPlayer

THE NUMBER of television licences in force across the UK has fallen by almost 540,000 in just one year, according to the BBC’s latest annual report.

A total of 23.3 million licences were active at the end of the 2025/26 financial year, compared with 23.8 million 12 months earlier.

The reduction of 539,000 was considerably larger than the fall recorded during the previous year and reflects the growing number of households which say they no longer watch programmes requiring a television licence.

Households need a licence to watch or record television programmes as they are being broadcast on any channel, or to use BBC iPlayer. Those who only use other streaming services to watch programmes on demand do not generally require one.

The number of households declaring that they did not need a licence rose by 62,000 during the year, reaching approximately 3.7 million.

Licence numbers have now fallen by more than 2.5 million since the beginning of the decade, when around 25.9 million were in force.

BBC chief financial officer Berangere Michel said the majority of the decline appeared to be caused by people no longer consuming content covered by the licence.

She warned that the trend was unlikely to reverse and was instead expected to accelerate, strengthening the BBC’s argument that the way it is funded must be reformed.

The corporation’s annual report said its financial outlook had worsened during the second half of 2025, with licence sales falling more quickly than previously forecast.

Inflation, rising production costs and difficult trading conditions across the wider media industry have also increased the gap between the BBC’s income and its expenditure.

Although licence fee income stood at around £3.87 billion in 2025/26, the value of that income has fallen sharply when inflation is taken into account.

In today’s prices, the corporation received approximately £1.34 billion less than the equivalent amount raised in 2016/17, representing a real-terms reduction of around 26 per cent.

The BBC reported an operating loss of £121 million for 2025/26 despite an increase in the price of the television licence during the year.

Director-general Matt Brittin described the situation as a “moment of real jeopardy” for both the BBC and public service broadcasting in the UK.

He said the corporation continued to play an important role in public life, the economy and Britain’s cultural influence, but acknowledged that it would have to change substantially to remain relevant in a rapidly evolving media market.

The report shows that 94 per cent of adults use at least one BBC service each month, but fewer than 80 per cent of households now contribute through the licence fee.

BBC chairman Samir Shah said the difference between the number of people using BBC services and those paying for them demonstrated that the existing system could no longer support the corporation’s public service responsibilities.

The BBC is preparing for negotiations over its next Royal Charter, with the current arrangements due to expire at the end of 2027.

Options being discussed include retaining a reformed licence fee, extending payments to some households using commercial streaming services, or developing a different funding system. The Government has not yet made a final decision.

The future of the licence fee also has implications for broadcasting in Wales. S4C receives its public funding through the television licence, with £97.6 million allocated to the Welsh-language broadcaster during 2025/26.

The BBC has already announced plans to reduce spending across its news, nations and content divisions.

The first phase is expected to save around £160 million, contributing towards a wider target of £500 million by 2028/29. The programme is expected to result in between 1,800 and 2,000 job losses over three years.

BBC executives maintain that substantial reform will be needed alongside those savings if the organisation is to continue providing television, radio, news, online and regional services on their current scale.

THIS AUGUST, SPAN Arts is proud to present Journey of a Shapeshifter, an immersive Welsh-language aerial circus performance from Freya Sofia and company. 

Surrounded by ancient woodland in the meadow at Colby Woodland Gardens, this unforgettable show offers an immersive, nature-drenched experience.

Freya Sofia and company are based in the Dyffryn Ogwen (Valley) in North-West Wales.

Their work is inspired by the local landscape, folklore and folk music. Journey of the Shapeshifter is a circus and theatre show with live folk music, performed in Welsh, that will captivate families and audiences of all ages. 

Inspired by the tale of Ceridwen and Taliesin from the Mabinogi, the show follows the themes of transformation and metamorphosis of humans embodying animal forms.

The show is performed on an outdoor aerial rig, with symbolic props, puppets and accompanied by live Welsh folk music that draws you into the story of the performance. The greater message is that we, as animals, are part of the natural world and can live harmoniously with nature.

Join us for an enlivened summer performance in the meadow at Colby Woodland Garden on August 1. There will be two performances at 1pm and 2pm. 

Audiences are advised to bring their own picnic rugs and chairs for the performance. The show will go on, rain or shine, so we ask you to dress for the weather and come prepared.

There is on-site pay-and-display car parking provided by the National Trust. The site is accessible via gravel paths. Please contact [email protected]  for accessibility information.

You can book tickets via www.span-arts.org.uk

For ticket holders who need access support to attend, we offer a free ticket for their companion, carer or personal assistant. Contact 01834 869323 to book your carers ticket.

FAMILIES across Wales can look forward to a summer packed with adventure, as Cadw unveils its exciting programme of family-friendly events set within the nation’s most iconic castles, abbeys and ancient landmarks.

Taking place throughout the school holidays, the events programme invites visitors to step into the past through immersive experiences, interactive workshops and hands-on activities designed to bring Welsh history to life for all ages.

Dr Kate Roberts, Chief Executive of Cadw, said: “Summer is the perfect time for families to step outside and explore Wales’ incredible heritage, and our events programme makes those visits even more memorable.

“Whether it’s stepping into the shoes of medieval characters, discovering ancient traditions or simply spending time together in remarkable settings, there’s something for everyone to enjoy. Plus, with free child entry for adult members, it’s a fantastic way to make lasting memories over the school holidays.”

With over 70 Cadw events scheduled across Wales in July and August, highlights from this summer’s programme in West Wales include:

Historic Echoes (Laugharne Castle)

Saturday 1 and Sunday 2 August, 11:00-16:00

Step into the early 15th century at Laugharne Castle to discover how castles were attacked and defended, handle replica weapons and armour, and learn about medieval medicine through a series of expert demonstrations.

Hysterical History (Kidwelly Castle)

Saturday 1 and Sunday 2 August, 11:00-16:00

Take part in an interactive experience at Kidwelly Castle, where visitors can explore the skills, training and traditions of medieval knighthood through engaging, hands-on activities with Sir Roland De Preaux.

Children’s Activity Day (Strata Florida Abbey)

Thursday 13 August, 10:00-12:00. Online pre-booking is essential.

Spend the day at Strata Florida Abbey, where young historians can explore the medieval abbey’s past through hands-on archaeology experiences and learn about the lives of the Cistercian monks and the surrounding landscape.

Historia Normannis (Laugharne Castle)

Saturday 8 and Sunday 9 August, 11:00-16:00

Witness the spectacle of knights’ tournaments at Laugharne Castle to watch combat displays and see justice delivered at the Shire Court. Alongside the action, enjoy humorous performances that bring key moments in history to life in an entertaining and accessible way.

Living History Weekend (Laugharne Castle)

Saturday 25 and Sunday 26 July, 11:00-16:00

Experience medieval village life at Laugharne Castle with a weekend of living history. Visitors can see dramatic demonstrations of Civil War armour and weaponry, with live cannon and musket firing.

In addition to these events, Cadw is offering a series of guided tours throughout the summer to give visitors a chance to delve deeper into the details of each location. In West Wales this includes: Castell Oxwich, and  Castell Cilgerran. Pre-booking via the Cadw website for these events is required.

For those looking to make the most of their visits this summer and beyond, a Cadw membership offers free entry to all events and unlimited access to over 130 historic places across Wales. Children go free with adult memberships, making it a great value option for families. As a bonus, members receive a Cadw handbook, free audio guides at selected sites and two Heritage in Wales Magazines each year.

Find out more and book tickets at https://cadw.gov.wales