The UK Government has launched a review that could replace the fixed BBC TV licence fee with a sliding scale payment system. The proposal is part of a wider examination of the BBC's funding model as the corporation's Royal Charter approaches its expiry in December 2027.
Culture Secretary Lisa Nandy has indicated openness to substituting the current flat-rate licence fee with a graduated system based on ability to pay. The fee has been the subject of intense scrutiny, remaining static at £159 for two years before rising to £174.50 in April 2025 in line with inflation.
The Government's Green Paper, published on Tuesday, consults on a range of options including updating licence fee reductions, enabling the BBC to generate more commercial income, and securing sustainable funding for the World Service. A public consultation is open until 10 March 2026, with responses to inform a White Paper expected in 2026.
The Department for Culture, Media and Sport said the review aims to ensure the BBC remains independent, accountable, and sustainably funded. Ms Nandy emphasised that the corporation must adapt to a rapidly changing media landscape while maintaining public trust and reflecting the whole of the UK.
