The culture secretary has said the BBC’s licence fee is “unenforceable” and insisted “no options are off the table” when the government begins a review into the corporation’s current funding model later this year.
In an interview with the Telegraph, Lisa Nandy said there were “problems” with the annual charge, with “fewer and fewer people” paying the £174.50 fee.
The charter, which expires in 2027 and is under review, is an agreement between the BBC and the government that sets out the terms and purposes of the corporation – including the existence of the licence fee.
A BBC spokeswoman said the broadcaster looks forward to engaging with the government and securing the long-term future of the BBC.
Nandy has already started negotiations with the BBC about the corporation’s funding.
It currently gets most of its income from the licence fee – in the last financial year, the BBC received £3.7bn, or about two-thirds of its total income, from it.
“We’re open to a different system,” she told the Telegraph, but admitted no preferred options had been put forward yet.
She added the government wanted the public’s input in shaping the new model to create “a fairer, more sustainable system”.
According to the BBC, 80% of households currently pay the licence fee.
Nandy also said she had been “very concerned” about the way the fee had been enforced in the past as it had been found to disproportionately target women.
Two BBC reviews found the gender disparity had been due to societal factors.
The review in 2017 detailed a gender skew towards women-only households, a greater likelihood of women answering the door to TV Licensing Enquiry Officers and a higher chance of them engaging positively with an officer.
In 2023, the BBC set out plans to reduce the high proportion of women being prosecuted for licence fee evasion, after figures showed that they made up 76% of the 52,376 people convicted over it in 2020.
Nandy has previously said the charge was “deeply regressive” and that she was thinking “quite radically and creatively” about alternatives. But the minister has ruled out using general taxation to fund the BBC.
She did, however, keep open the possibility of a subscription model.
Last month in a Sunday Times interview, the corporation’s chairman suggested wealthier households could be charged more.
A BBC spokeswoman said: “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.
“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.”
