Culture Secretary Lisa Nandy has not ruled out the possibility of a ‘sliding scale’ payment system
The Government has not ruled out the possibility of a “progressive” model of paying for the TV licence weeks before the cost is set to soar.
Westminster has pledged an inflation-linked hike to the licence each year until 2027, starting with an increase from £169.50 to £174.50 next month. After years of the fee being frozen followed by slower-than-expected rises, the BBC is struggling financially.
However, Culture Secretary Lisa Nandy has left the door open for poorer households paying less for the TV licence, and for those well-off to shoulder the burden, as she mulls over different funding methods.
She told the PA news agency she could be open to replacing the flat licence fee with a sliding scale after a suggestion by the BBC chairman.
Samir Shah, who assumed his current role in March 2024, suggested to The Sunday Times a more equitable payment system, questioning: “Why should people who are poor pay the same as people in wealthy households?”
Nandy told PA: “We are keen that whatever we do in the Charter Review that it commands broad public support and that it is progressive.
“The licence fee is a flat rate. It’s harder for poorer households to pay it and we’ve seen some horrendous cases where the BBC has prosecuted mainly vulnerable women for not paying the licence fee. We think that’s completely unacceptable.”
Last November, Nandy mentioned that a review of the BBC’s Royal Charter would be a chance to consider various funding options for the broadcaster, reports the Daily Record.
So far, she has ruled out general taxation as a means of funding the BBC for fear it would leave it too open to interference from the sitting government of the time.
She said: “I think it’s too early to be speculating about the right approach. I think it’s important that both the BBC and the Government are respectful of the fact that this has to be a public conversation.
“The BBC doesn’t belong to the Government or the BBC, it belongs to the people of this country, and they have to be central to the conversation about how we safeguard its future, not just for the next decade but well into the latter half of this century.”
While a subscription model has been floated as an alternative, Shah dismissed it, stating it “would not meet the BBC’s key role to offer something for everyone in the country”.
TV licence petition
Elsewhere, the Government has responded to an online petition demanding the abolition of the BBC TV licence fee for those over state pension age.
The petition, which has garnered over 39,500 signatures, was initiated by Michael Thompson who argued there was a “desperate need to provide all pensioners with at least this concession” amid the soaring cost of living.
The Department for Culture, Media and Sport (DCMS) gave a somewhat non-committal response on the Parliament’s petitions website regarding a proposal, neither outright rejecting nor directly acknowledging it.
Instead, it pointed out that over-75s might get a free TV licence if they receive Pension Credit, alongside an extension to the Simple Payment Plan, which helps spread the cost of the annual fee.
The Simple Payment Plan offers those struggling with the licence fee a chance to pay in more manageable fortnightly or monthly instalments over 12 months.
According to the DCMS, BBC analysis indicates that the number of households using the Simple Payment Plan could double to about 500,000 by the end of 2027.
It said in a statement: “The forthcoming Charter Review is a key opportunity to set the BBC up for success long into the future. It will look at a range of issues and, as a priority for this Government, will start a national conversation to make sure the BBC truly represents and delivers for every person in this country.
“As we address these vital issues about the future of the BBC, we must also ensure that there is a sustainable funding model that is fair for those who pay for it.”
It added: “The Government will be taking forward this issue as part of the Charter Review process, since what the BBC does and its future role is fundamentally influenced by how it is funded.
“The Government is keeping an open mind about the future of the licence fee, and firmly believes that the unique obligations placed on the BBC demand continued, sustainable public funding to support its vital work.”
At time of writing, the petition as collected 39,586 signatures out of the 100,000 required to trigger a House of Commons debate. The deadline for signatures May 26. You can sign the petition or view the DCMS response by clicking 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. Click here to check if you need a TV licence.
Ready to pay for a TV Licence?
The licence currently costs £169.50, but will go up to £174.50 on April 1. You can pay for it in one go or:
- Pay by monthly Direct Debit – from £14 per month
- Pay by quarterly Direct Debit – approximately £44 per payment
- Pay less if you’re over 75 on Pension Credit, registered blind or live in a care home
- 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 discount?
Certain groups are eligible for some TV licence discounts. For instance, those living in care homes might get one entirely for free, or at least slash the price if they’re part of an Accommodation for Residential Care deal – click here to find out more.
People who are registered blind are entitled to a half price TV licence (£84.75) and may be eligible for a refund on payments made in previous years – if they have been the registered TV licence holder.
Free licence for over-75s
Those already benefiting from Pension Credit have one less thing to fret about. They can send off for their free over-75 TV Licence when they hit 74.
TV Licensing will cover your payments until your 75th birthday, after which the complimentary licence kicks in. This will be confirmed in writing.
If you believe you qualify for a free licence but don’t currently possess one, call 0300 790 6117 and chat with an adviser to ask for an application form. The lines are open from Monday to Friday, between 8.30am and 6.30pm.