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BBC should cut licence fee cost and expand it beyond TV, MPs recommend

The committee says the current model is outdated and cites a £1.2 billion to £1.3 billion funding loss over the past decade.

  • The Digital, Culture, Media and Sport Committee recommended that the BBC reduce its £180 licence fee and extend coverage to non-broadcast services, modernizing the funding model ahead of charter renewal later this year.
  • Director-General Matt Brittin reported the BBC lost around £1.2 billion to £1.3 billion in licence fee funding over the last decade, with 40% of this decline attributed to fewer households paying the fee.
  • The DCMS advised the BBC to stop 'paying over the odds' for overseas content like Suits and Scooby Doo, while recommending the broadcaster open its iPlayer to other public service content to 'benefit audiences and the industry in the long term.'
  • A BBC spokesperson welcomed the recommendations, stating the corporation has 'consistently argued that the current funding model is outdated and needs reform' while supporting universal funding reform.
  • With 15 months until the current charter expires, the Government must finalize its proposals later this year; Culture Secretary Lisa Nandy recently called the previous funding deal 'appalling' but has promised to publish the government's position soon.
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The BBC should reform the license fee so it is no longer "linked to a TV" and couple this with a price drop, MPs have recommended.

The IndependentThe Independent
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The Independent (US)The Independent (US)
Lean Left

BBC told to slash TV licence fee in major overhaul

The recommendations were outlined in a new report from the Digital, Culture, Media and Sport Committee (DCMS)

·London, United Kingdom
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Daily Mirror broke the news in London, United Kingdom on Sunday, September 27, 2026.
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