New BBC director-general Matt Brittin has launched a fierce attack on the television licence fee, describing it as a “straitjacket” that is “no longer fit for purpose” and a “busted flush”. In his first public appearance before the culture select committee on Wednesday, the former Google executive, who took up the role six weeks ago, argued that the current funding model is “yesterday’s model” and must be reformed to reflect modern viewing habits.
Brittin Calls Licence Fee a 'Busted Flush'
Mr Brittin told MPs that the BBC is “held back” by the licence fee mechanism, which currently costs households £180 per year. The number of households paying the fee has declined in recent years, with many switching to streaming platforms such as Netflix and Disney+ that do not require a licence. He said: “[The BBC is] held back, I think, by that straitjacket of the current licence-fee mechanic, and obviously that’s no longer fit for purpose. It’s yesterday’s model. It’s a busted flush.”
Ministers Review Charter Ahead of 2027 Expiry
Mr Brittin’s comments come as ministers review the BBC’s Royal Charter, which determines how the corporation is funded and is due to expire in 2027. He did not specify a replacement for the fee but, alongside BBC chair Samir Shah, suggested the government reconsider a compulsory household levy collected through utility bills such as broadband, mobile or electricity. The pair argued that if all homes paid through such a scheme, the fee could be reduced from its current level.
Mr Brittin acknowledged the concerns about the cost of living but said the levy “has merits and others have found it to have merits”. Mr Shah added that it “would solve a lot of problems for us, and we're certainly open to it”, but admitted it “could be seen as, and is effectively another tax”.
Modernised Licence Fee Could Cover Streaming Services
Ministers are also considering expanding the current £180-per-year fee to cover households that use only streaming services like Netflix and Amazon Prime. Mr Shah said: “The licence fee has always evolved to capture changes in behaviour and consumption. The consumption behaviour change, we all know, is moving away from linear to on-demand. The modernised licence fee needs to capture that moment, and that will include other platforms.” He stressed that a modernised fee must capture how people, particularly the younger generation, consume content.
Mr Brittin dismissed the idea of a Netflix-style subscription fee or funding the BBC through advertising. He told MPs: “I think the impact of the BBC taking advertising would be to take it away from others, and I think that would [have] a devastating impact on the economy. I think the same, to an extent, with subscription.”
Cost-Cutting Measures and Job Losses
Mr Brittin is seeking to reduce costs by 10% as part of wider cost-cutting measures launched by his predecessor, Tim Davie. He warned on Wednesday that more job losses are to come, with as many as 2,000 roles at risk.
Who Needs a TV Licence?
In the UK, a TV licence is required if you watch or record live TV on any channel, or use BBC iPlayer – whether live, catch-up, or on demand. This applies regardless of the device used, including a TV, laptop, tablet, or phone. A licence is also needed to stream live content through platforms like ITVX, All 4, Amazon Prime Video, Now TV, or Sky Go. However, if you only use these services for on-demand or catch-up (excluding BBC iPlayer), a licence is not required. Services like Netflix, Disney+, and YouTube do not require a TV licence unless you are watching something broadcast live, such as a live sports event or news stream.
Failing to purchase a licence when required risks prosecution and a fine. Fines vary by location: in the UK mainland, the penalty can be up to £1,000, while in Guernsey and Jersey, fines can reach up to £2,000 and £500 respectively. Some people may be eligible for discounts of 50% or even 100% on their TV licence.
