TV licence prices are set to rise again in just a few weeks, taking the cost to £174.50 per year.
The BBC will be increasing the fee annually until 2027 in accordance with the present royal charter. It can impose a significant strain amid an increase in the energy cap and the cost of living crisis.
Under new proposals, households that only use streaming services like Netflix might also be required to pay the TV licence fee. This comes as ministers are drafting plans to restructure the corporation’s funding after the BBC's existing royal charter expires in 2027.
The royal charter is an agreement between the Government and the BBC on its role and governance. But what exactly is changing with the TV licence? Here’s a breakdown.
What changes are coming to the TV licence?
The BBC TV licence fee is set to increase by £5 to £174.50 per year on April 1. The increase is based on the annual inflation rate.
Sources have told Bloomberg that in order to ensure the BBC's survival, the Government is also considering forcing Netflix and Disney+ subscribers to pay the TV licence fee.
Other options include allowing the BBC to use advertising, creating a specific tax for streaming services or making BBC Radio listeners pay.
These possible changes are being considered as viewing habits have changed as users gravitate toward on-demand services.
The talks follow Culture Minister Sir Chris Bryant's statement that he wanted the BBC licence fee to continue to support a “massive production budget” for UK-produced TV shows and films.
“I do want the streamers to come here. Tom Cruise has made massive investments in the UK,” he said.
“But I also want us to have a system where a British production company is commissioned by others to make something that where the Intellectual Property (IP), or some of the IP, remains with the production company. I kind of want a bit of both.”
TV licence Factbox
- The BBC TV licence fee is set to increase by £5 to £174.50 per year on April 1.
- Viewing habits have changed as users gravitate toward on-demand services, therefore, the TV licence could be extended to cover Netflix and Disney Plus services.
- You’ll need to be covered by the TV licence if you're watching LIVE TV on a television, computer, tablet, games console, smartphone or any other device.
- This applies to watching 'live TV' via internet-only services such as Amazon Prime Video and Now TV.
- You currently don’t need a TV licence if you’re watching videos on YouTube or catching up on your favourite series on Netflix.
- State pensioners who are aged 75 and older and qualify for pension credit are eligible for a free TV licence.
According to Jay Hunt, chairperson of the British Film Institute (BFI), British public service broadcasters (PSBs) can effectively cohabit with streaming behemoths like Netflix and Apple TV Plus.
She said: “There is an emerging thesis that the only television that speaks to British audiences is made by public service broadcasters.
“I’ve spent most of my career in public service television and extraordinary programming is coming out of the BBC, Channel 4, Channel 5, the whole time, but it is also now coming out of inward investment.”
Hunt added that shows like Slow Horses, Rivals and Baby Reindeer are a few examples that “there is great British content being made beyond the PSBs as well”.
There were also rumours circulating that the licence fee would be covered by general taxation.
However, Culture Secretary Lisa Nandy ruled this one out on BBC Breakfast saying that the license fee is “not only insufficient, it's raising insufficient money to support the BBC, but it is also deeply regressive”.
Money raised from the licence fee pays for BBC shows and services - including TV, the BBC website, podcasts, iPlayer, apps, as well as radio.
Your household has to pay the fee if you’re watching live television on a television, computer, tablet, games console, smartphone or any other device. This includes watching live Premier League matches on Amazon Prime.
Who is eligible for a free TV licence?
State pensioners who are aged 75 and older and qualify for pension credit are eligible for a free TV licence.
According to the TV Licensing website, ”you, as the licence holder, are 75 years or older and you, or your partner living at the same address, receive Pension Credit”.
Individuals who are retired, over 60, disabled, or reside in care facilities or protected housing can obtain their licence for a discounted price of £7.50.
And a 50 per cent discount is available for those who are registered blind or who live with someone who is.
People who are struggling to pay can spread the cost across 12 months using the Simple Payment Plan.
