Middle-class families could be forced to pay more to watch the BBC under radical new government proposals designed to fund free or discounted television licences for benefit claimants. The plans, which could also see popular shows placed behind paywalls and advertising introduced for the first time in the corporation's century-long history, were set out by Culture Secretary Lisa Nandy on Tuesday.
A New Funding Vision for the BBC
The proposals form part of a Green Paper consultation on the future funding of the BBC as it approaches its once-in-a-decade charter renewal in 2028. Ms Nandy defended the broadcaster, calling it 'an institution like no other', and confirmed the government is backing the existing £174.50 licence fee as a 'tried and tested' model for now.
However, the consultation document suggests wealthier households may need to contribute more to fund targeted 'concessions' for those facing financial hardship. This move follows Chancellor Rachel Reeves's recent budget, which raised taxes by £30 billion to expand welfare support.
The policy paper indicates the government is examining international models, heavily hinting at the German system where individuals receiving social benefits can be exempt from the broadcasting contribution. The consultation states: 'Changes to the BBC's funding model could allow new TV licence concessions... New concessions could require other households to pay more.'
Paywalls, Ads, and Backlash
Alongside changes to the licence fee structure, Ms Nandy is exploring other ways for the BBC to raise revenue. These include potentially allowing advertising across all its services or restricting ads to iPlayer, the BBC website, and YouTube content. Another controversial idea is a 'top-up subscription service' for older iPlayer content or a Netflix-style platform placing hit entertainment shows like Strictly Come Dancing and The Traitors behind a paywall.
These commercial proposals are expected to draw fierce opposition from commercial rivals like ITV and Channel 4. Former culture secretary John Whittingdale predicted they would be 'appalled'.
Criticism and Sustainability Concerns
The plans have already faced significant criticism. John O'Connell, chief executive of the TaxPayers' Alliance, labelled the idea 'absurd', arguing: 'The licence fee is already regressive, and shifting more of the burden on to working households just entrenches unfairness and fuels resentment.'
Mr Whittingdale also stated the current licence fee model is 'unsustainable', noting that the number of people refusing to pay is growing rapidly—down from 25.2 million households in 2020 to 23.8 million currently. He warned that tinkering with contributions would not solve the fundamental problem of non-payment.
The consultation, which will run for 12 weeks, also proposes updating the BBC's charter to prioritise 'accuracy' as highly as 'impartiality'. This follows recent scandals, including the resignation of director-general Tim Davie and news boss Deborah Turness over a doctored Donald Trump speech.
With the licence fee still providing over half of the BBC's income—£3.8 billion this year—the outcome of this consultation will critically shape the future of British broadcasting. Any changes would take effect from 2028.
