Netflix subscribers in the UK may soon be required to pay the BBC TV licence fee under proposals being considered by the government. Culture Secretary Lisa Nandy told a cross-party select committee in parliament that the government is committed to retaining the licence fee but reforming it, potentially extending the charge to users of streaming services such as Netflix and Disney+.
Staggered Fee Approach Suggested
Nandy suggested a staggered approach to introducing the fee, where households would pay a small additional amount rather than the full £180 currently required for a standard TV licence. She said: "You could then task the BBC with having targeted concessions for people who needed them or who used BBC services less."
Currently, a TV licence is not required to watch Netflix or other on-demand streaming services unless you watch live television on any channel or use BBC iPlayer. The proposed change would broaden the licence fee requirement to cover streaming platforms.
Criticism from TaxPayers' Alliance
John O'Connell, chief executive of the TaxPayers' Alliance, criticised the plan, calling it an "archaic" continuation of the licence fee. According to The Sun, O'Connell said: "Far from modernising the BBC's funding system, it would only further entrench the already archaic nature of the hated TV tax. Lisa Nandy should stop kicking the can down the road and move the broadcaster onto a subscription service, with some taxpayer funding for essential programming such as the World Service."
Decline in TV Licence Numbers
The number of BBC TV licences has dropped by more than half a million in a single year. An annual report published by the BBC confirmed a decline to 23.3 million licences by the end of the 2025/2026 financial year, down from 23.8 million the previous year. The decrease was attributed to a rise in households declaring they do not need a licence due to not consuming licensable content. Total households stating they did not need a licence increased by 62,000, reaching 3.7 million.
BBC Charter Review
The BBC's permanent charter is set for review and is expected to end in December 2027. The charter establishes the governance framework for the corporation. Nandy's proposal would see this renewal scrapped, potentially paving the way for a new funding model. The government has not yet confirmed a timeline for implementing any changes to the licence fee system.
