BBC boss says £180 TV licence fee is 'no longer fit for purpose'
The BBC's Director-General says the £180 TV licence fee is no longer fit for purpose, as the broadcaster explores new ways to fund public service broadcasting in the streaming era.
The future of the BBC TV licence has been thrown into the spotlight after the corporation's new Director-General said the current £180 annual fee is "no longer fit for purpose" and called for a new funding model that reflects how people now watch television.
Speaking to MPs, the BBC chief said the traditional licence fee was designed for an era when viewers watched live television through an aerial, but media habits have changed dramatically with the rise of streaming platforms such as Netflix, Disney+ and YouTube.
The BBC is now exploring a range of options ahead of the next Royal Charter, including a universal household levy or extending payments to households that mainly use streaming services. The broadcaster says it needs a more sustainable funding model to continue investing in news, entertainment, sport and educational programming.
The standard colour TV licence increased to £180 per year in April 2026. A licence is required to legally watch or record live television on any channel or streaming service, or to use BBC iPlayer.
No final decision has been made on how the BBC will be funded after the current Charter expires in 2027. Any changes would require approval from the UK Government following public consultation and negotiations with the broadcaster.
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