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Currently, the TV licence fee must be paid by anyone watching live television, regardless of whether this is on the BBC or not. The fee stands at £159 per year for colour TV licences, and is applicable to most people – with some exemptions in place.
However, the TV licence is not totally accepted, with some pushing back against the fee and calling for it to be scrapped, or an alternative considered.
Express.co.uk spoke exclusively to Oscar Wall, general manager, EMEA, at Recurly, a subscription management and recurring billing platform, who discussed the sentiments towards the licence fee.
He said: “The BBC is a national treasure, but there has been a lot of backlash surrounding the licence fee.
“If we look at other countries and how they have tackled the licence fee, there might be answers.
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“For example, in Sweden, a few years ago, the licence fee was converted into an added on tax as a small percentage.
“The licence fee used to be the same price for all, much as it is in the UK. But now because it is a tax, it can vary according to a person’s income – meaning those who earn more will pay more.
“People were more receptive to that, and it went over well to the extent it is no longer part of the public debate. There may be scope for the UK to do this, to make the system fairer.”
Alternatively, Mr Wall suggested, there may be an ability to reduce the licence fee for some, in order to make the payment more palatable.
The expert said such a move is likely to be a “popular step” amongst Britons.
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Within this report, the committee suggested potential funding models for the future – including exemptions for individuals who are facing financial challenges.
The report stated: “There is scope for the existing licence fee to be reformed to make it more progressive for others.
“A discount could presumably be extended to other low income groups across all ages, for example, those receiving Universal Credit.”
The BBC’s Royal Charter will remain in place until at least 2028, guaranteeing the current funding arrangement until then.
However, once this expires, Mr Wall suggested there may be a move into the subscription space – where Britons would have to pay to watch.
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He continued: “The BBC has to catch up to exist in a subscription space – even if they start completely free.
“There may be aspects of the BBC people could pay for in the future, if the licence fee were to be scrapped.
“For example, there could be a free tier of the well-loved favourites, as well as the news, and then people pay for their usage beyond this point.
“That would change to a completely different funding model, but it is competing with the bunch – Netflix, Amazon, Disney Plus.
“But there is a slippery slope when it comes to these things – especially with the public perception.
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“If the BBC were to pursue a subscription or paid model, some may think more and more content is moving into the paid tier.
“Individuals could feel like they are forced to subscribe and pay more, which creates a strain. It would feel like the promise wasn’t kept.”
With divided opinion on the licence fee as it currently stands, particularly regarding cost, the BBC will need to chart a new path forward – one which will balance public opinion and running the corporation.
Mr Wall concluded: “The main question to ask is whether the TV Licence is currently sustainable, especially for people who do not have an affiliation or connection to the BBC as a brand.
“I think the answer is that it will be extremely challenging, especially if the Government isn’t fully behind it with a strong statement It will be harder and harder to justify or defend the price as time goes by.”
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