The TV licence fee could climb to almost £245 a year by 2036

Millions of households could face paying almost £245 a year for a TV licence within the next decade if annual increases continue at the current pace, new analysis suggests.

The colour TV licence fee has already risen to £180 a year, with fresh projections indicating the cost could climb by more than £60 over the next ten years.

Research by prediction platform Predictionist examined what could happen if the latest 3.14 per cent annual increase was repeated every year until 2036.

The Government has confirmed the TV licence fee will continue to be linked to CPI inflation until the end of the current BBC Charter period.

To illustrate the impact of compounding, Predictionist compared two approaches. If the fee increased by the average cash amount of around £3.14 each year, it would reach about £211 by 2036.

However, if the latest 3.14 per cent increase was repeated annually, the compounding effect would push the yearly fee to almost £245 by 2036.

The projection comes after the colour TV licence fee rose from £145.50 in 2015 to £180 today, following a two-year freeze between 2015 and 2017.

A spokesperson for Predictionist said: "This is not a confirmed future bill, but it shows how quickly a household charge can grow when annual percentage rises keep compounding."

The spokesperson added: "For viewers, the important thing is not just the next £5.50 increase. It is the direction of travel.

A few percentage points a year can turn into a much larger bill over a decade, especially when households are already watching every recurring cost."

Prediction specialists stress that the £245 figure represents a trend-based scenario built from historical and current data, serving as a warning about the pace of increases rather than an official Government or BBC forecast.

Several groups can reduce or eliminate their TV licence costs entirely.

Pensioners aged over 75 who claim Pension Credit from the Department for Work and Pensions qualify for a free licence, bringing their bill down to nothing.

Pension Credit provides additional income support for those over State Pension age on low incomes, topping up weekly earnings to £238 for single claimants or £363.25 for couples.

Those who are severely sight impaired can apply for a 50 per cent discount on their licence, which also covers anyone living in the same household.

Partially sighted individuals do not qualify for this reduction.

The Government has also expanded the Simple Payment Plan to assist households experiencing severe financial hardship.