Government considers extending UK TV Licence to streaming-only households

A range of options is reportedly under consideration ahead of the current Royal Charter periods ending in 2027

By Matthew Corrigan

Published: January 29, 2025 Updated: January 30, 2025

A range of options is reportedly under consideration ahead of the current Royal Charter period's ending in 2027

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The UK government is considering extending the TV Licence to include households which only use streaming services, according to a report by Bloomberg.

A menu of options is under consideration, with the Department for Culture Media and Sport (DCMS), Treasury and Prime Minister's office said to be discussing how the BBC should be funded when its current 11-year charter ends at the end of 2027.

As viewing habits continue to change, ministers are looking into whether the licence fee should be retained, modified or scrapped altogether with the corporation funded via alternative models such as subscription, advertising or general taxation. A fee for listeners to the BBC's radio output is also said to have been mooted.

Discussions are still at a preliminary stage, and particularly sensitive in view of the BBC's position as a vehicle for promoting UK soft power in the international arena, said the article.

A source familiar with the process explained the difficulties to Bloomberg, adding that if there were an alternative funding model, the licence fee would have been scrapped already.

A DCMS spokesperson would not comment on speculation over the discussions, and said, We will provide more details about charter review plans in due course.

Households that watch BBC TV programmes or use the BBC iPlayer must currently pay an annual charge of £169.50, income from which totalled £3.66 billion in 2023/24. Extending the fee to include streaming services such as Netflix or Amazon Prime would prove controversial among users who already pay subscription fees.

Culture Secretary Lisa Nandy has previously stated that the general taxation idea is not something we're considering.

In a statement, the BBC said: We want everyone to get value from the BBC. We look forward to engaging with government on the next charter and securing the long term future of the BBC.

Lisa Nandy looking at alternatives' to BBC licence fee

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