THE BBC is reportedly considering scrapping their licence fee but Brits will be hit with a council tax hike instead – even if they don’t own a TV.
The fee is due to rise to £180 in April – but the corporation is now expected to propose a major shake-up with a new “fair and sustainable” universal funding model.
Currently, viewers of live TV or anything on iPlayer must pay the licence fee but it’s not required for listening to radio or podcasts, or website access.
The licence fee model as we know it today was introduced in 1946, costing just £2, and in 1971 radios were exempted.
But unpaid fees cost the BBC more than £1billion last year, it was revealed.
Now, the Beeb will look to overhaul the charge as it seeks to combat rising levels of evasion and non-payment, reports The i Paper.
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In its response to a Government Green Paper on the future of the broadcaster, the BBC will rule out putting adverts on its main channels or hiding programmes behind a Netflix-style subscription paywall, according to the outlet.
Instead, bosses are expected to push for a new “universal funding model fit for the future” to replace the licence fee – which brought in £3.8billion last year.
Insiders say the BBC has been exploring alternatives to the current model – including scrapping controversial house visits from licence fee inspectors and the “threatening” letters sent to suspected non-payers.
And one option under consideration is a household levy that could be collected through council tax.
That would mean the charge could apply to far more homes than the 24million households who currently pay the licence fee.
Under the idea, payments could be adjusted depending on income, meaning lower earners would pay less.
Some groups – such as students – could receive discounts or even free access, it is understood.
The new system would reportedly be designed to be “sufficient, sustainable and fair”, while still raising enough cash to support universal public service broadcasting.
An insider told The i: “The BBC recognises we can’t keep asking households across the board to pay an increased licence fee every year which doesn’t keep up with the inflationary costs of programme-making.
“Subscription is out because the BBC has to be a universal public service broadcaster.
“We need a fair, progressive system that means the BBC can compete against streamers with secure funding for decades ahead.”
How to watch TV legally without paying for a licence
YOU can legally use the following services without a TV Licence as long as you aren’t using them to watch or stream live TV:
- On demand TV – such as catch-up TV and on demand previews, which are available through services including ITV Player, All 4, My5, BT Vision/BT TV, Virgin Media, Sky Go, Now TV, Apple TV, Chromecast, Roku and Amazon Fire TV. You can’t watch or download programmes on BBC iPlayer without a TV licence.
- On demand movies – from services such as Sky, Virgin Media, BT Vision, Netflix and Amazon Instant Video.
- Recorded films and programmes – either via DVD or Blu-ray, or downloaded from the internet.
- YouTube – Video clips that aren’t live through services such as YouTube.
The proposal is similar to Germany’s system, where households pay a “digital public service media” tax of €18.36 (£16) a month whether they watch or listen to the country’s equivalent of the BBC or not.
Any overhaul would not come in before 2028, when the BBC’s next Royal Charter – which sets out how the corporation is run and funded – begins.
But the plan faces a major hurdle as ministers would have to back it.
Downing Street may be wary of introducing anything that critics could brand a new “TV tax”.
The BBC’s charter proposals also suggest letting viewers have a direct say in decisions through so-called “citizen assemblies”.
The broadcaster lost more than £1 billion last year after a record number of households refused to pay the licence fee, according to the Public Accounts Committee.
It is currently working on iPlayer tracking tech to sniff out non-payers, according to reports.
From April 1, the annual fee for a colour TV will jump to £180 – up from £174.50.
Government officials confirmed the news last month and explained that the price of a standard colour licence will increase by £5.50 over the current rate.
For families already feeling the pinch, this boils down to an extra 46p being snatched from their bank accounts every single month.
The Sun previously reported how the BBC could scrap the TV licence fee for millions and put shows like Line of Duty and Top Gear behind a paywall.
It is understood other options considered include finding a different form of public funding to support the World Service.
The submission could also see BBC bosses suggest to Downing Street that production arm BBC Studios could take on more debt while it expands.
The broadcaster is yet to finalise its proposals but reports suggest key will be urging ministers not to favour a “status quo” licence fee model.
The government has suggested a Netflix-style subscription or advertising – though it’s thought Beeb bosses are not keen on either.
Ministers have, however, ruled out a new tax model which would see the fee collected like a utility bill.
