BBC licence fee change could force Britons to fork out more than £1,000 a year
British households could face paying more than £1,000 per year for their TV viewing habits under potential changes to the BBC licence fee system.
The warning comes as ministers consider extending the licence fee to cover streaming services like Netflix, Disney+ and Amazon Prime.
Personal finance expert Andrew Gosselin of Coupon Mister has calculated that viewers who subscribe to all major streaming platforms (Prime Video, Apple TV, DAZN, Disney+, Netflix, NOW TV, and Paramount+) without ads currently pay £881 annually.
Adding the licence fee would push the total cost to £1,050.50 per year for households opting for ad-free streaming services.
Gosselin told the Mirror: “If you’re a family and your children enjoy watching TV, the best option would be to stick with one platform, Disney+. Currently, a yearly subscription without ads will set you back around £59.88, but with the possible TV licence, this could increase to £229.38.
“For people living solo and who want to save money, your best bet would be to purchase a standard Netflix subscription with ads.
“The platform has a wide range of shows across different genres – but factoring in the new TV licence, this would cost you around £229.38 each year.”
The BBC licence fee is set to increase from £169.50 to £174.50 this April. Currently, only households watching live TV or BBC iPlayer must pay the fee, which generates £3.7billion annually for the broadcaster.
However, with half a million households cancelling their TV licences in 2023, the BBC is exploring new funding options ahead of its Royal Charter expiry in 2027.
The Labour Party Government is reportedly considering requiring Netflix and streaming service viewers to contribute to the licence fee to secure the BBC’s future.
Ministers are also examining the possibility of a tiered licence fee system to help lower-income homes.
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Public reaction to the potential changes has been fierce, with viewers taking to social media to voice their opposition.
“The BBC TV licence is a scam and needs to be stopped. There is no logical reason we still have to pay it,” one viewer told Sky News.
Another compared it to “Sainsbury’s saying you owe them for the groceries you’ve just bought at Aldi.” Rebecca Ryan from pressure group Defund the BBC called the possible move “opportunistic” and “desperate”.
Some viewers suggested the BBC should “shut up shop or start advertising” instead of extending the fee.
A BBC spokesman said: “We want everyone to get value from the BBC, which is why we’re focused on delivering what audiences want from us – trusted news, the best homegrown storytelling and the moments that bring us together.”
The broadcaster plans to launch its “biggest ever public engagement exercise” this year to shape its future direction. Culture Minister Sir Chris Bryant emphasised the importance of maintaining a “massive production budget” for UK TV and film creation.
Culture Secretary Lisa Nandy described the current licence fee as “not only insufficient, it’s raising insufficient money to support the BBC, but it also is deeply regressive”.