Not everyone will want to pay an extra £11 monthly fee, with concerns being raised
The BBC TV Licence fee could be swapped out for a new monthly charge added to household broadband bills, according to a think tank suggestion. The £11 suggestion is one of a number of ideas put forward as the wider conversation continues about how the BBC might be funded in the future.
The suggestion comes as the Social Market Foundation (SMF) floated the idea of a universal “Home Internet Levy” as an alternative way to fund the BBC and ensure its future. However, the proposal is not Government policy, and there is no confirmation that it will happen.
Under the concept, households would pay an extra £11 a month on top of their existing broadband bill – around £132 a year. The proceeds would then be used to fund the broadcaster.
However, the suggestion has drawn criticism from the Internet Services Providers’ Association (ISPA), which represents the UK’s broadband and internet industry. ISPA said it is against the levy, explaining: “ISPA is not in favour of such a levy, which would increase prices for consumers and affect providers’ ability to finish the infrastructure rollout. The sector remains committed to working constructively with the Government so that everyone benefits as the country moves towards an increasingly digital future.
“The proposed internet levy risks undermining this and will lead to an average increase of 35% in broadband bills which would not be used to go back into broadband networks or services.”
ISPA added: “Increasing everyone’s broadband bills by £11 a month to replace the TV licence fee during cost of living pressures is not the answer to how to fund the BBC.”
New report
The SMF’s new report, Valuing the BBC, examines the potential consequences of withdrawing public funding from the broadcaster and proposes alternative funding models.
Published on September 23, it recommends that the existing licence fee should be replaced, but it doesn’t just suggest the £11 fee. Its “recommendations for Government” reads:
- Replace the licence fee with a ‘Home Internet Levy‘, funding the BBC for £11 a month on top of broadband bills, and provide universal access to BBC content.
- If the licence fee is not scrapped, a smaller ‘News and Culture Levy‘ of £2.30 a month could instead be added to home internet bills in order to make up for expected continued declines in real licence fee income.
- Give people on universal credit or pension credit aged under 75 a 25% concession to the licence fee, making the current system more progressive.
- Avoid adding a paywall or advertising to BBC content, which would undermine other broadcaster’s business models while generating insufficient funds.
- Make all adults a ‘member’ of the BBC, giving them greater ability to hold the organisation to account on its public service mission.
- Give the BBC a permanent Royal Charter, as Culture Secretary Lisa Nandy pledged to do in March.
- Set up a BBC Funding Commission to recommend levels of funding required for the BBC to meet its public service obligations, modelled on the German KET.
- Leverage the BBC’s skills and assets more widely across public services, from bringing the BBC archives accessibly into British classrooms, to expanding BBC Verify to help increase British resilience to misinformation.
Why has a broadband levy been suggested?
As reported by the Daily Record, the SMF argues that the BBC needs a sustainable form of public funding and has examined what could happen if licence fee funding were withdrawn without an adequate replacement.
Its modelling suggests that without licence fee funding, around 41% to 63% of the content people currently watch on the BBC could be lost, and that between 18,000 and 29,000 jobs across broadcasting, the cultural sector and related supply chains could disappear.
The research was sponsored by campaign group 38 Degrees. You can read the report here.
Who needs to buy a TV licence?
- A TV licence is needed in the UK to watch or record any programmes as they are being broadcast live on television
- It is also required to watch or stream live programming on any online TV streaming service, such as BBC iPlayer, Sky Go, Amazon prime and YouTube
You can check if you need a TV licence on the TV Licensing website here.
Ways to pay for a TV licence
A TV licence costs £180, you can pay it all in one go, or:
- Pay by monthly Direct Debit – from £15 per month
- Pay less for your licence if you’re over 75 on Pension Credit, registered blind, or live in a care home
- Pay by quarterly Direct Debit – it works out at around £46.25 per payment
- Pay weekly, fortnightly or monthly with a TV Licensing payment card (from £6.50 per week) – once the card is set up you can pay online, through the TV Licensing app, by phone, text message or at any PayPoint
Can I get a TV Licence discount?
Certain groups are entitled to TV licence discounts such as those who live in care homes, who could get it for free or pay a reduced amount if they are part of an Accommodation for Residential Care scheme – find out more here.
Anyone registered as blind or severely sight impaired can get a TV licence at half price (£90) and may also be able to claim back some of what they paid in previous years — as long as they were the named licence holder at the time.
Free TV licence – how to claim
If you already receive Pension Credit, you can apply for your free over-75 TV licence when you are 74 years old. TV Licensing will update your payments to cover you until your 75th birthday, at which point you’ll then be covered by your free licence. They will confirm this in writing.
If you believe you qualify for a free licence but don’t currently have one, you can call 0300 790 6117 to speak to an adviser and ask for an application form. The helpline is open Monday to Friday, 8.30am to 6.30pm.
