People who only watch online streaming services such as YouTube and Netflix could be forced to pay the TV licence fee under new government plans. Discussions are taking place about bringing in an additional fee for households that use only online streaming services.
A senior Whitehall source told The Independent that the government was set to extend the TV licence fee to people who only watch online streaming services. The full plans will be published in a white paper before Christmas.
Funding overhaul for the BBC
The paper includes proposals on ways to overhaul the funding model for the modern BBC, as fewer people pay for TV licences. Currently, anyone who watches live television is required to pay a licence fee, even if they do not watch the BBC. However, they are not charged for playback or delayed viewing, except when using BBC iPlayer.
The proposed changes would extend this requirement to include all online providers, such as Netflix, Amazon, Disney+, and YouTube, which are currently exempt, as well as all streaming content.
Government rationale and impact
The Whitehall source explained that the move was "because people are able to use them to avoid paying currently". They added, "It’s not fair that people are essentially able to watch television content but avoid the licence fee."
The source said there had been a "hold-up" with the charter renewal talks under the previous administration. "But now we have had a change of prime minister, we are able to press ahead with the plan to expand it to streaming platforms", they added.
This year’s BBC report showed the number of people paying the licence fee plunged by more than 500,000. It showed that 23.3 million licences were purchased, down 539,000 on the previous 12 months and a fall of almost two million on five years ago.
Reactions and next steps
Lisa Nandy is the Secretary of State for Digital, Culture, Media and Sport and plays a large role in the decision around the funding methods for the BBC. However, the Whitehall source warned the increased revenue from the levy would not be able to fill gaps in its spending.
"The money needs to be used to help support local journalism and counter a lot of the conspiracy theories and fake news which we have seen help parties like Reform getting elected in different parts of the country," they said.
This comes as BBC News goes live on YouTube for the first time, with the livestream available in the UK and the US. The trial on YouTube comes just months before the current charter runs out in 2027.
A BBC spokesperson said: "We have consistently argued that the current funding model is outdated and needs reform. We will continue to engage with government to secure a new charter that provides sustainable, sufficient and universal funding so the BBC can deliver for audiences for generations to come."
A DCMS spokesperson said: "The BBC must be funded by a model that is sustainable and fair to all those that are paying it. Through Charter Review, we are looking at a range of options, including how the licence fee could be reformed, but no final decisions have been made."
