The BBC is losing over £1bn a year in potential licence fee revenue, according to a cross-party group of MPs who warn the corporation is under “severe pressure”. The Commons public accounts committee found that the evasion rate has reached 12.5%, costing up to £550m, while the number of households claiming they do not need a licence has risen from 2.4m in 2021 to 3.6m this year, representing a loss of up to £617m.
Enforcement efforts are stalling despite a 50% increase in visits to unlicensed homes last year. Prosecutions fell by 17% in 2024, and BBC executives report that householders increasingly refuse to answer the door. The committee said the BBC is not doing enough to enforce collection, calling this “unfair to the vast majority of households who do pay”.
The BBC faces critical government talks over the future of the licence fee as it negotiates charter renewal. This comes amid turmoil after the resignation of director general Tim Davie, prompted by criticism over editing of a Donald Trump speech in a Panorama episode. Critics argue the licence fee is harder to justify as viewers shift to digital platforms like YouTube and TikTok.
Geoffrey Clifton-Brown, Conservative chair of the committee, said the report reveals “an organisation under severe pressure” and warned that without a modernised approach focusing on online viewing, “faith in the licence fee system will ebb away”. A BBC spokesperson said the licence fee needs reform and that the corporation is exploring fairer, more sustainable funding models while safeguarding its universal service.
