BBC Licence fee change update as Government issues 'open mind' statement on streaming services

The Government says it is assessing all of its options in regards to increasing the TV Licence. In a statement released by the Department for Digital, Culture, Media and Sport (DCMS), it said that 'no decisions have been taken at this stage' but that it was 'committed to ensuring it has a sustainable future'. Its comments come after support surged for a petition calling for the licence fee not to be extended to streaming services . Currently, you need a TV Licence to watch or record programmes on a TV, computer or other device as they are broadcast, and to watch on-demand BBC programmes on iPlayer .

The Government website explains that you need a TV Licence if you: watch or record live TV on any channel or service use BBC iPlayer However, you do not need a TV Licence to watch: streaming services like Netflix and Disney Plus on-demand TV through services like All 4 and Amazon Prime Video videos on websites like YouTube videos or DVDs It costs £180, or £60.50 for black and white television sets, for both homes and businesses. Changes are being considered as the BBC ’s Royal Charter is set to expire on December 31, 2027.

It has been rumoured that streaming services, like Amazon and Max, could be included in the next charter as a means to generate more revenue. The petition in question, created by Alec Burns and launched on June 11, called for this to be explicitly ruled out. It said that it would place an undue financial burden on already hard-pressed UK families and would 'tarnish the reputation of the BBC'. The petition has breached the 10,000-signature threshold required for a Government response.

It stands on 16,366 signatures at the time of writing. It says: "There are widespread reports that the Government is considering extending the BBC licence fee to include subscribers of streaming services that are not owned or run by the BBC. We believe this is a wholly unacceptable proposal. "Amid a cost-of-living crisis, we believe the Government should be finding ways to save the public money, not expanding their means of taxation. We feel the BBC already has a tarnished reputation, and this move could further diminish the reputation of the BBC."

The DCMS response said: "The Government is considering responses to the public consultation on the BBC Charter Review Green Paper. We are keeping an open mind on future funding of the BBC. No final decisions have been taken "As part of the Charter Review the government ran a public consultation which asked people from different communities to be part of the conversation on the future of the BBC. The Government is keeping an open mind on the future funding of the BBC and no decisions have been taken at this stage.

Ongoing policy development includes consideration of impacts on households, consumers, investment and the wider creative economy. "The BBC exists for all of us. It is a vital national institution that informs, educates and entertains audiences across the UK. The BBC sits at the heart of the UK's creative and media ecosystem, delivers trusted news and information, supports jobs and growth across the nations and regions, and continues to provide services used by the vast majority of UK adults each month.

The Government believes a thriving BBC benefits the whole country and is committed to ensuring it has a sustainable future. "In these uncertain times, it is a light on the hill for high quality journalism and one of the most trusted organisations both at home and abroad. Reuters Institute research found that 59% of UK respondents trusted BBC News in 2026, making it one of the UK's most trusted news brands. Ensuring it remains relevant and trusted by audiences is vital and increasingly challenging in these polarised times.

This is why this Charter will support it to thrive as an organisation for the coming years. And when the BBC thrives, we all benefit. "At the same time, the changing media market and audience viewing habits mean the Charter Review needs to consider whether the current funding model remains suitable for the future. Audiences now have much greater choice in what media they consume, and how and when they do so. These changes are having a direct impact on TV licence uptake, with the total number of licences in force falling by 3 million since 2017/18.

The Government therefore believes it is right to consider how the BBC can continue to be sustainably funded for the long term. "We understand that ensuring the licence fee is affordable is important. We want to ensure that costs are kept as low as possible for households to support them with the cost of living, while ensuring the BBC has sufficient and necessary resources to continue to deliver for all of us. We are looking at a range of options, including how the BBC can operate more efficiently, generate more commercial revenue, and how the licence fee could be reformed.

"We are aware of the financial difficulties faced by some households and are committed to supporting them. The Government has already extended the Simple Payment Plan, supporting more households to split up their annual licence fee payment into more manageable weekly, fortnightly or monthly instalments. The change, which came into effect in February 2025, makes a greater number of households eligible for the plan. "Support also continues to be provided to those who are most vulnerable, including with free licences for over-75s on Pension Credit and reduced fees for care homes and those who are registered blind or severely sight impaired.

As the Charter Review Green Paper makes clear, we are considering a range of options to better account for different household situations in future, including targeted interventions such as introducing new concessions or alternative payment schedules. "We are now considering responses to the public consultation on the Charter Review Green Paper and engaging with stakeholders. The Government expects to publish a White Paper on the future of the BBC before the end of the year."

The response comes after new BBC Director-General Matt Brittin described the existing model as a “busted flush” and “yesterday’s model,” stating that the current system is “no longer fit for purpose”. Culture secretary Lisa Nandy has ruled out the option of direct taxation, but is looking at other avenues. The BBC is losing around 500,000 licence fee payers a year, with total active TV licences dropping to 23.3 million (down by about 539,000 in a single year).

Around 3.6 million people formally state they do not need or have a licence. Ms Nandy has prevoiously said on BBC News: "We’re looking at a number of options. The only thing we’ve ruled out is direct taxation, partly because of the cost-of-living pressures, but mostly because we are very concerned to safeguard the BBC’s independence. “We’re looking at a number of options. The minute that I start ruling one out, people will suspect that there’s a master plan for others.

The truth is, if it were easy to do this in a cost-of-living crisis, another government would have done it earlier. But we are determined to put the BBC on a sustainable financial footing in the fairest way we can.”