Labour is considering expanding the BBC licence fee to households that only watch streamed content through apps like Netflix, sources in the government have leaked.
The move has sparked outrage as people would have to pay the fee – currently £169.50 – regardless of whether they watched any live TV. This would be in addition to subscriptions they already pay to services like Disney and Prime Video.
It comes as the government looks to change the way the BBC is funded ahead of the current BBC charter coming to an end in 2027.
The corporation reported half a million less TV licence purchases last year, meaning a loss of roughly £84 million in revenue, as more and more people move away from live TV.
John O’Connell, chief executive of pressure group the TaxPayers’ Alliance, blasted the potential move, stating: “Forcing streaming service users to cough up the licence fee would truly be one of the most bonkers ideas ever concocted.
“Far from modernizing the BBC’s funding system, it would only further entrench the already archaic nature of the hated TV tax.
“Lisa Nandy should stop kicking the can down the road and move the broadcaster onto a subscription service, with some taxpayer funding for essential programming such as the World Service.”
GB News has crunched the data and can reveal these would be the following cost increases for families who don’t currently pay the licence fee but do have a streaming subscription.
How much will it cost you to watch TV if Labour extend the licence fee to cover those that only watch streaming content?
How much will it cost you to watch TV if Labour extend the licence fee to cover those that only watch streaming content?
GBN
It reveals that for a household with Netflix’s most basic subscription, their TV expenditure will rise to £228 per year, a rise of 282 per cent, even if they don’t watch any live TV.
For a household with a standard Netflix subscription and Amazon Prime Video (approx. £203 per year currently), the licence fee expansion would see the cost rise to £372 per year even if they don’t watch live TV.
For a household with Netflix, Amazon and Disney (approx. £298 per year currently), the licence fee expansion would see their TV expenditure rise to a whopping £469 per year even if they don’t watch live TV.
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Cost of streaming services vs. BBC licence fee
Cost of streaming services vs. BBC licence fee
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Options other than extending the licence fee to encompass streamers are believed to be on the table, such as taxing streaming companies.
The BBC could also introduce adverts or charge people to tune into BBC Radio channels.
It could also roll out a subscription based model like that of Netflix or remain with the current licence fee set up.
The licence fee is currently £169.50 but will rise to £174.50 per year from April 2025, a rise of £5 in line with inflation. Black and white TV licences are rising £57 to £58.50.
Blind people receive 50 per cent off the fee, while over 75’s on pension credit pay no charge.
A DCMS spokesman said: “We do not comment on speculation. We will provide more details about Charter Review plans in due course.”
