Ahead of negotiations with government over how the BBC is funded, comments by the BBC Director-General suggest he’s in support of changes that will force some homes to pay more.
- Progressive Licence Fee could lead to discounts for benefit claimants, while everyone else pays more.
- Culture Secretary has previously said current licence fee regime is ‘unenforceable’.
BBC Director-General Tim Davie has said he’s in favour of a reforming the licence fee ahead of the start of charter renewal talks with the government this year.
His comments at the Deloitte and Enders Media and Telecoms Conference strongly suggest the BBC will go into discussions over its future attempting to retain a version of the licence fee for another decade, despite growing hostility toward the mandatory charge.
In 2023, the year for which the most up-to-date figures are available, half a million homes stopped paying the fee. The BBC’s popularity and audience figures have been experiencing a decline, particularly among younger users, as audiences increasingly turn to online platforms and streaming services for news and entertainment.
At the conference, Davie said he “didn’t want the same system exactly to go out again. I think there is reform in terms of the scope of the licence fee and how progressive it is because the market’s changing.”
A progressive licence fee involves different households paying different amounts for the BBC depending on their wealth. While poorer households may end up paying less for the BBC, others could be forced to pay more.
How would that work?
Otherwise, the BBC could reduce the licence fee for householders who claim benefits. At the moment, over 75s claiming Pension Credit get free licences. A similar scheme could offer a percentage off the TV licence for those on Universal Credit, for example. However, that is highly likely to cause resentment from non-claimants, especially if they are asked to pay much more.
Alternatively, the BBC would need to have access to detailed financial information for each household, which would be a huge bureaucratic task. It’s also likely to kick up a lot of resistance.
The previous government set up a task force to review funding options for the BBC, which was subsequently dismantled.
Culture Secretary Lisa Nandy is reported to have suggested the BBC be funded through general taxation. After the report in The Sunday Times created a backlash, Nandy quickly disowned the report. But in April, she went on the record insisting the current licence fee is “unenforceable”. She told The Daily Telegraph that “no options were off the table” for alternative funding.
In the past decade, the licence fee has been reformed to cover live streaming. The rules now explicitly also cover services originating from outside of the UK. If you watch live programmes on services such as YouTube, Netflix, Prime Video or Discovery+, you are required to be covered by a TV licence, according to TV Licensing. However, the guidance also states you don’t need one if you only view on-demand content or clips. How TV licencing could check whether you’ve streaming live content or not is unclear.
By: Marc Thornham