BBC licence fee cost may now be determined by value of house in new proposal
TV license fees may start increasing based on the value of your home, as proposed by a BBC boss. Charmain Samir Shah has urged that the £174.50 fee be scrapped to make way for a progressive payment structure that is based on assets.
Speaking in an interview earlier this year, Mr Shah explained the fee would be tied to property bands and collected at the same time as council tax, which would come as his first major shake-up since taking over from Richard Sharp. He also shut down speculation that the TV licence would be scrapped for a Netflix subscription-style service, stating that it would "not meet the BBC's key role to offer something for everyone in the country.'
Viewers living in higher council tax bands would pay more for BBC service while those in lower bands may end up paying less than the current rate. Those who opt out of paying a TV licence would no longer be able to do so. The chairman believes this policy would reduce the need to prosecute people for not paying.
He told The Sunday Times: "It gets rid of the enforcement issue, which is a problem. The idea that not paying the licence fee is a criminal offence seems too harsh."
In Northern Ireland, the Channel Islands and the Isle of Man, where there is no Council Tax, an alternative would have to be implemented.
Culture Secretary Lisa Nandy may also be open to it, having described the current model as "harder for poorer households to pay".
In the interview, he answered questions about changing the model of the BBC and rejected the proposal of a hybrid structure, which would see the broadcaster offering its basic services such as news for free and charging for content like drama or comedy series.
He continued to say that the advertising on the BBC would "kill off ITV", and dismissed the idea that the broadcaster should be funded solely by general taxation because it would "leave the BBC open to influence from the government of the day".
Samir Shah, 73, took over as BBC chairman in February 2024 after he replaced Richard Sharp, who resigned in April 2023.
At the moment, although there are concessions or free licences for certain groups, such as those over 75 who receive Pension Credit, the licence fee does not take personal assets into consideration.
The standard fee is charged at £174.50 per annum with a reduced rate of £58.50 for black and white subscriptions.
For viewers who are blind or severely sight-impaired, a 50% discount is available, bringing the cost down to £87.25.
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