Government ‘thinking creatively’ about TV licence fee alternatives

The government has ruled out funding the BBC from general taxation if the TV licence fee is scrapped.

Speaking to BBC Breakfast, culture secretary Lisa Nandy described the licence fee as “insufficient” and “deeply regressive”.

“We've seen far too many women prosecuted over recent years for being unable to pay it,” Ms Nandy said.

“And it's a flat fee that means that poorer people pay proportionately more than anybody else.”

"That doesn't help the BBC, it doesn't help the government, and it doesn't help people in this country.”

As a result, Ms Nandy is looking at alternative ways to fund the corporation after its current royal charter runs out in 2027.

Radical and creative solutions on the table

“We make no apology for saying that we're considering all options,” Ms Nandy said.

However, she insisted that general taxation isn’t being considered, as “it's important that we have free and fair broadcasting in this country that is able to hold the government to account".

“We're thinking quite radically and creatively about how we future-proof our national broadcaster for many years to come,” she continued.

Ms Nandy added that “there is a genuine sense out there in the public that the licence fee was built for a different era".

TV licence fee going up in April

The annual cost of a standard colour TV licence will go up to £174.50 from the beginning of April.

That’s £5 up on the current price of £169.50 a year.

Do I need a TV licence?

You need a TV licence if you:

watch live broadcasts on any TV channel, including international channels
use streaming services and click ‘watch live’
record live TV on any device (including VHS recorders)
watch any content on BBC iPlayer, whether live or on catch-up

You don’t need a TV licence if you’re watching:

streaming services such as Disney Plus or Netflix
on-demand TV via ITVX, Channel 4 or Amazon Prime Video
YouTube videos
DVDs, Blu-rays or videos
a programme that has already aired and isn’t on BBC iPlayer

The basic rule of thumb to remember is that if you press ‘watch live’ and you don’t have a licence, you’re breaking the law.

If you decide you don’t need a licence, you still need to let TV Licensing know, or you might get letters asking why you don’t have one.

Can I get a discount on a TV licence?

Some discounts are available to certain groups, specifically:

If you’re over 75 and get pension credit, you can get a free TV licence.
If you live in a care home because you’re either disabled or retired and over 60, a TV licence will cost you just £7.50.
If you’re registered blind, you’ll get a 50% saving.
Black and white licences are cheaper at £57, but you'll need to have a black and white TV.