UK government considers replacing BBC licence fee with £11 monthly internet levy
The UK Government is considering proposals to replace the BBC licence fee with an £11-per-month internet levy as part of its ongoing review of the broadcaster’s future funding model.
The proposal, put forward by the Social Market Foundation (SMF), would see the current annual licence fee replaced by a charge added to household broadband bills. At £132 per year, the levy would cost less than the existing £180 licence fee while broadening the funding base to internet-connected homes.
According to the report, the broadband-based model is one of several options being examined by ministers during the Government’s Charter Review, which will determine how the BBC is funded beyond 2027. The review was launched to identify a sustainable long-term funding structure as traditional television viewing habits continue to decline.
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The SMF argues that a universal internet levy would provide a more stable source of income for the BBC as licence fee payments fall. The report notes that millions of households no longer require a TV licence because they do not watch live television, increasing pressure on the broadcaster’s existing funding model.
While the proposal has reportedly been discussed with advisers to Culture Secretary Lisa Nandy, no decision has been taken and the Government has not announced any plans to introduce the £11 charge. The current licence fee remains in place while ministers assess a range of funding options for the corporation’s next Charter period.
