Culture Secretary Lisa Nandy has asserted that the BBC licence fee is “unenforceable” and insisted that “no options are off the table” ahead of a Government review into the corporation’s funding model later this year.
In an interview with the Daily Telegraph, the Labour minister highlighted growing problems with the annual charge, noting that “fewer and fewer people” are paying the £174.50 fee.
The BBC’s current charter expires in 2027 and is under review. This agreement between the BBC and the Government sets out the terms and purposes of the corporation, including the existence of the licence fee.
Nandy has already begun negotiations with the BBC about its future funding arrangements. The Culture Secretary expressed particular concern about how the licence fee has been enforced, especially regarding vulnerable women.
“I’ve been very concerned about the way it’s been enforced in the past, with women – particularly vulnerable women – targeted for enforcement action, and the BBC itself has accepted that,” Nandy told the Telegraph.
Two BBC reviews have acknowledged this gender disparity. A 2017 review found the issue stemmed from societal factors, including women being more likely to answer the door to licensing officers.
In 2023, the BBC announced plans to reduce the high proportion of women being prosecuted after figures revealed they comprised 76 per cent of the 52,376 people convicted of licence fee evasion in 2020.
The licence fee currently provides the majority of the BBC’s income. In the last financial year, the corporation received £3.7billion from the fee, accounting for approximately two-thirds of its total income.
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According to the BBC, around 80 per cent of households currently pay the licence fee. Nandy has previously described the charge as “deeply regressive” and said she was thinking “quite radically and creatively” about alternatives.
The review comes as part of negotiations about the BBC’s charter, which sets out the corporation’s purposes and governance structure. With the current charter due to expire in 2027, it has prompted discussions about the future funding model.
“We’re open to a different system,” Nandy told the Telegraph, though she admitted no preferred options had been put forward yet.
The Labour Government wants public input in shaping the new model to create “a fairer, more sustainable system”.
While Nandy has ruled out using general taxation to fund the BBC, she has kept open the possibility of a subscription model.
Last month, the BBC’s chairman suggested in a Sunday Times interview that wealthier households could be charged more.
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The review will consider various alternatives as the Government seeks a more enforceable and equitable system.
A BBC spokeswoman responded to Nandy’s comments, saying: “The public cares about the BBC and we have launched our biggest ever public engagement exercise, so audiences can help drive and shape what they want from a universal and independent BBC in the future.”
The corporation emphasised its commitment to evolution and reform.
“We want to continue to reform and evolve and look forward to engaging with government on the next Charter and securing the long-term future of the BBC,” the spokeswoman added.