UK households who only watch streaming services like Netflix and Disney+ could soon be forced to pay the BBC licence fee. The BBC is facing a rapid decline in licence fee payments, with around 500,000 people refusing to pay in 2023-24.

Because of this, new funding methods are being looked at by the government. The fall in licence fee payers comes at the same time as the number of households subscribing to streaming services has surged to nearly 20 million.

With the licence fee set to rise to £174.50 from April, ministers are reportedly exploring ways to modernise BBC funding, including:

  • Forcing streaming-only households to pay the licence fee:
  • Introducing advertising on BBC channels
  • Taxing streaming platforms directly
  • Charging BBC radio listeners a separate fee
UK bank note with a pen and calculator
Millions of households who only watch streaming services like Netflix and Disney+ could soon be forced to pay the BBC licence fee (Image: Getty)

The proposals, first reported by Bloomberg, come ahead of the BBC charter renewal in 2028. However, enforcing such changes could prove legally complex, particularly with radio listeners. Culture minister Sir Chris Bryant has said he wants a “massive production budget” for creating TV and films in the UK to remain part of the purpose of the BBC licence fee.

Sir Chris spoke about how the sector needs support, when he appeared before the Culture, Media and Sport Committee on Tuesday for their British film and high-end television inquiry.

He said: “I don’t know where we’ll end up with the BBC Charter review, that’s not my area of responsibility, but I’ve always thought of the £3.75 billion of the licence fee as a massive production budget. And wherever we end up with (it), I want us to have a massive production budget for making television, not just high-end television incidentally, also unscripted and a whole series of other formats and movies, in the UK.”

He said he wants British production companies to be able to obtain more of their IP (intellectual property) when they are making deals with streamers. “I do want the streamers to come here. Tom Cruise has made massive investments in the UK,” he added.

“But I also want us to have a system where a British production company is commissioned by others to make something that where the IP, or some of the IP, remains with the production company. I kind of want a bit of both.”

Earlier this month, the Department for Culture, Media and Sport dismissed reports that the BBC could be funded through general taxation. A spokesperson said: “Funding the BBC through general taxation is not being considered. We will provide more details about charter review plans in due course.”

Culture Secretary Lisa Nandy has previously criticised the current licence fee system, calling it “unsustainable and unfair.” Earlier this month, she said: “The licence fee is deeply regressive.

“It raises insufficient money to support the BBC and unfairly burdens lower-income households. Far too many women have been prosecuted for being unable to pay.”

The Government is set to launch a full BBC charter review this year, including a public consultation this summer and a white paper in 2025. A BBC spokesperson responded to the reports, saying: “We want everyone to get value from the BBC, which is why we’re focused on delivering what audiences want – trusted news, the best homegrown storytelling, and the moments that bring us together.

“This year, we will launch our biggest-ever public engagement exercise to let audiences shape what they want from a universal and independent BBC in the future.”