Low-income families could pay less for the TV licence in the future than those well-off as a senior minister left the door open for a more “progressive” form of payment.
The Government has pledged to an annual inflation-linked rise in the levy until 2027, beginning with next month’s increase from £169.50 to £174.50.
Following years of the licence fee being frozen and increasing slower than the BBC had hoped, the broadcaster has faced financial difficulties.
However, Culture Secretary Lisa Nandy has not ruled out the possibility of richer households paying more for their TV licence as she explores different funding models.
She told the PA news agency she was open to moving away from the flat licence fee towards a sliding scale system following a proposal by the BBC’s chairman.
Samir Shah, who has been in the role since last March, queried the current funding model on The Sunday Times, saying: “Why should people who are poor pay the same as people in wealthy households?”
Nandy said: “We are keen that whatever we do in the Charter Review that it commands broad public support and that it is progressive.
“The licence fee is a flat rate. It’s harder for poorer households to pay it and we’ve seen some horrendous cases where the BBC has prosecuted mainly vulnerable women for not paying the licence fee. We think that’s completely unacceptable.”
Last November, Nandy mentioned that Number 10 would utilise the BBC’s Royal Charter review to look into alternative funding methods for the corporation.
While she firmly rejected the idea of funding BBC through general taxation due to potential government interference, she has called for public involvement in deciding on the licence fee, reports the Daily Record.
She continued: “I think it’s too early to be speculating about the right approach. I think it’s important that both the BBC and the Government are respectful of the fact that this has to be a public conversation.
“The BBC doesn’t belong to the Government or the BBC, it belongs to the people of this country, and they have to be central to the conversation about how we safeguard its future, not just for the next decade but well into the latter half of this century.”
Shah noted his disagreement with a subscription-based model as he believed “it would not meet the BBC’s key role to offer something for everyone in the country”.
Online TV licence petition
In related news, the Department for Culture, Media and Sport (DCMS) has responded to an online petition calling for the licence fee to be made free to all pensioners. At time of writing, the petition – created by Michael Thompson – has gathered 39,585 signatures, less than half of the 100,000 needed to trigger a Commons debate.
The body neither rejected the idea outright, nor did it directly address it. Instead, it pointed out that individuals over 75 may qualify for a free TV licence if they receive Pension Credit, alongside mentioning the Simple Payment Plan’s extension. This plan allows those who find the £169.50 annual fee challenging to pay in more manageable fortnightly or monthly instalments across 12 months.
According to DCMS, BBC analysis indicates that the number of households benefiting from the Simple Payment Plan could rise to roughly 500,000 by the end of 2027.
The statement went on to say: “The forthcoming Charter Review is a key opportunity to set the BBC up for success long into the future. It will look at a range of issues and, as a priority for this Government, will start a national conversation to make sure the BBC truly represents and delivers for every person in this country.”
The DCMS added: “As we address these vital issues about the future of the BBC, we must also ensure that there is a sustainable funding model that is fair for those who pay for it.
“The Government will be taking forward this issue as part of the Charter Review process, since what the BBC does and its future role is fundamentally influenced by how it is funded.
“The Government is keeping an open mind about the future of the licence fee, and firmly believes that the unique obligations placed on the BBC demand continued, sustainable public funding to support its vital work.”
You can sign the petition or view the DCMS response by clicking here.
Who needs to buy a TV licence?
A TV licence is required for anyone who watches or records live broadcasts on terrestrial or subscription-based TV (such as Sky or Virgin Media), as well for those who stream live or on-demand content on platforms such as BBC iPlayer, ITVX and even YouTube. Click here to find out if you need a licence.
How do you pay for a TV licence?
You can pay the annual fee in full or via the following methods:
- Pay by monthly Direct Debit – from £14 per month
- Pay less for your licence if you’re over 75 on Pension Credit, registered blind, or live in a care home
- Pay by quarterly Direct Debit – it works out at about £44 per payment
- Pay weekly, fortnightly or monthly with a TV Licensing payment card (from £6.50 per week) – once the card is set up you can pay online, through the TV Licensing app, by phone, text message or at any PayPoint
Can you get a discount?
There are TV licence discounts for certain groups. Residents in care homes might be eligible for a free licence or a concessionary rate under the Accommodation for Residential Care scheme – click here for more information.
Those who are registered blind are entitled to a 50% discount, reducing the cost to £84.75, and they may also claim refunds on previous years if they were the named licence holder.
Over 75 and looking for a free TV licence?
Those already receiving Pension Credit can apply for their free over-75 TV Licence when turning 74. TV Licensing will adjust your payments to cover you until your 75th birthday, from which point the free licence applies. Confirmation will be sent out in writing.
If you believe you qualify for a free licence but currently do not possess one, speak to an adviser by calling 0300 790 6117 to request an application form. Lines are open Monday to Friday between 8.30am and 6.30pm.