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BBC suggests licence fee could be cut if more people pay

BBC plans licence fee reform including possible fee cut if more households pay, aiming to address £1bn evasion and ensure sustainable funding amid rising costs and streaming competition.

  • This week the British Broadcasting Corporation suggested cutting the TV licence fee in the near future if more people pay, while the annual charge rises to £180 from April 1.
  • Amid cost-of-living pressures, the BBC warns the current funding model 'can no longer sustain the BBC’s public service mission' as only 80% of the 94% of adults using its services pay the licence fee.
  • The BBC proposes replacing the licence fee with a 'universal funding model', exploring a household levy via council tax, and opening iPlayer to ITV and Channel 4.
  • Ministers will now examine the BBC's submission and publish a White Paper later this year, while Downing Street is likely wary of measures branded a new 'TV tax'; Director-General Tim Davie leaves next month with Rhodri Talfan Davies interim from April 3.
  • The BBC warns that replacing the licence fee could affect more than 24 million households, rejects advertising or subscription models as non-universal, and urges Government to fully fund the BBC World Service.
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BBC suggests licence fee could be cut in the future 'if more people start to pay it'

The BBC has suggested the cost of the TV licence fee could be cut in the near future if more people started paying for it

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The Independent broke the news in London, United Kingdom on Thursday, March 5, 2026.
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