The BBC TV licence fee could be replaced with an extra £11 monthly charge added to household broadband bills under new proposals from think tank the Social Market Foundation (SMF).
The SMF has proposed introducing a universal 'Home Internet Levy' as a new way of funding the broadcaster. Under the proposal, households would pay £11 a month on top of their existing broadband bill, equivalent to £132 a year, with the money used to fund the BBC.
ISPA warns of 35% bill increase
The proposal has prompted a warning from the Internet Services Providers' Association (ISPA), which represents the UK's broadband and internet industry. ISPA said it opposed the levy and warned it would increase the average broadband bill by around 35 per cent.
ISPA said: "Increasing everyone's broadband bills by £11 a month to replace the TV licence fee during cost of living pressures is not the answer to how to fund the BBC."
The industry body added: "Such a levy would also raise questions on whether broadband providers would be expected to oversee the collection and enforcement of the licence fee, which is not an appropriate role for them to have."
ISPA noted that broadband prices have fallen in real terms in recent years as investment has delivered faster networks. It said: "The proposed internet levy risks undermining this and will lead to an average increase of 35% in broadband bills which would not be used to go back into broadband networks or services."
Why has a broadband levy been proposed?
The proposal is not UK Government policy. It is one of a series of recommendations made by the SMF as debate continues over how the BBC should be funded in future.
The SMF's report, Valuing the BBC, examines the potential consequences of withdrawing public funding from the broadcaster and proposes alternative ways of funding it. It recommends that the existing licence fee should be replaced, or at least supplemented, by a universal charge on home internet bills.
The SMF argues that the BBC needs a sustainable form of public funding and has examined what could happen if licence fee funding were withdrawn without an adequate replacement. Its modelling estimates that between 41 and 63 per cent of content currently watched on the BBC could disappear without licence fee funding, while between 18,000 and 29,000 jobs could be lost across broadcasting, culture and associated supply chains.
It estimated the economic impact at between £2.1 billion and £3.3 billion, with job losses potentially affecting areas outside London and the South East, including Scotland. The research was sponsored by campaign group 38 Degrees.
As part of the report, the SMF also surveyed a representative sample of 2,050 UK adults through Opinium between June 26 and 29 to examine people's viewing habits and attitudes towards proposals to scrap the licence fee.
Other changes proposed for TV licence
The £11 broadband levy is not the only recommendation contained in the report. The SMF also proposes a 25 per cent licence fee concession for people under 75 receiving Universal Credit or Pension Credit if the existing system continues.
It argues against putting BBC content behind a paywall or introducing advertising, and recommends giving adults membership of the BBC to provide greater involvement in holding the broadcaster to account for its public service responsibilities.
For now, households will continue to pay for a TV licence where one is required under the existing rules.
Who needs to buy a TV licence?
A TV licence is needed in the UK to watch or record any programmes as they are being broadcast live on television. It is also required to watch or stream live programming on any online TV streaming service, such as BBC iPlayer, Sky Go, Amazon Prime and YouTube. You can check if you need a TV licence on the TV Licensing website.
Ways to pay for a TV licence
A TV licence costs £180.00. You can pay it all in one go, or pay by monthly Direct Debit from £15 per month, pay less if you're over 75 on Pension Credit, registered blind, or live in a care home, pay by quarterly Direct Debit at around £46.25 per payment, or pay weekly, fortnightly or monthly with a TV Licensing payment card from £6.50 per week.
Certain groups are entitled to TV licence discounts. Those who live in care homes could get it for free or pay a reduced amount if they are part of an Accommodation for Residential Care scheme. People who are registered blind or severely sight impaired are entitled to a half price TV licence (£90.00) and may be eligible for a refund on payments made in previous years if they have been the registered TV licence holder.
If you already receive Pension Credit, you can apply for your free over-75 TV licence when you are 74 years old. TV Licensing will update your payments to cover you until your 75th birthday, at which point you'll then be covered by your free licence. If you think you're eligible for a free licence but don't currently have one, call 0300 790 6117 to request an application form.
