Keir Starmer told 'there's never a good time to scrap BBC TV licence fee - so do it now'
Is the British public finally ready to switch off the BBC in protest over the latest hike to the TV licence fee? The cost of a TV licence is to rise by £5.50 to £180 from April 1, the government has announced - and unsurprisingly many viewers are unhappy about it.
Various polls conducted over the past five years suggest that between 60% and 75% of people in the UK want to see the licence fee abolished, while up to 500,000 individuals actually give up their licence fee every year.
The current TV licence costs £174.50. It increased by £5 last year, and £10.50 in 2024. The fee pays for BBC shows and services, and its cost increases in line with inflation every year until 2027, following an agreement made in 2022.
While the majority of people in the UK want to see the licence fee scrapped and a new funding model brought in to replace it, the BBC said it was "keeping an open mind about the future of BBC funding", adding: "We have not yet identified a preferred model."
Scrapping the licence fee would ultimately be a decision for the Prime Minister Keir Starmer and Culture Secretary Lisa Nandy.
Those in favour of scrapping the licence fee are quick to point out that it doesn't mean the end of the BBC.
Rebecca Ryan for the campaign group Defund the BBC said: "Scrapping the licence fee wouldn't mean scrapping the BBC. It would mean bringing it into the 21st century - funded by choice not coercion. There is never going to be a 'comfortable' moment for the BBC to scrap the licence fee - but there has rarely been a clearer one.
"Public trust in the Corporation has been shaken by a series of editorial scandals and governance failures, yet households are still threatened with prosecution if they refuse to pay. That model looks increasingly indefensible in a modern on-demand world."
The group claim the licence fee simply "no longer represents good value for money."
They say families are being forced to pay £180 a year for a bundle of services they may not use, at a time when viewers can choose from streaming platforms offering vast libraries of content for less - and in some cases for free. Ms Ryan added: "The idea that watching live television should carry a criminal penalty belongs to a different era."
Many campaigners who want to see the licence fee scrapped argue the BBC's future lies in a subscription model, with advertising on some services and international and commercial expansion through the BBC Studios and partnerships.
Ms Ryan said: "The BBC is not entitled to guaranteed income. If its content is distinctive and high quality, people will pay for it voluntarily. The Corporation has enormous brand recognition and global reach. It should compete, not compel."
However a BBC spokesman argued there are many advantages to the current system. They said: "The licence fee ensures the BBC has the financial stability it needs to deliver for audiences and support the creative industries across the UK.
"It funds the full range of BBC services and helps us deliver trusted news, the best homegrown storytelling, and unmissable content that brings people together."
The statement continued: "The government is currently considering the BBC's next Royal Charter and future funding arrangements beyond 2027. We welcome this debate and have been clear we want reform so we can continue to deliver a public service BBC that is independent, sustainably funded for the long-term, and meets audience needs for generations to come."
Options include the current licence fee potentially being replaced with a different set of rates depending on which of the broadcaster's services people use.
The consultation document also suggests the possibility of an advertising or subscription model, which could replace the current system where all households pay a flat fee.
Many celebrities, most of whom have or currently still do work for the BBC it must be pointed out, have come out in staunch support of the licence fee. Sir David Attenborough said a "diminished BBC would simply mean a diminished Britain".
Dame Judi Dench said she supported the BBC "as a crucial creative force" while comic writer Armando Iannucci has criticised any freezing of the licence fee. Actors Samuel West, Samuel Anderson, Saffron Hocking, and Samantha Spiro have all appeared in campaigns highlighting the value for money the fee delivers.
Bectu (Broadcasting, Entertainment, Communications and Theatre Union), the largest union representing workers at the BBC, is unsurprisingly a strong proponent of maintaining the BBC licence fee model as the best way to fund the Corporation.
Head of Bectu Philippa Childs said: "The BBC is a vital part of UK culture, an independent and trusted news provider, a national educator, and the beating heart of our world-class creative industries ecosystem - all of which depend on the funding model.
"Without the stability that the licence fee funding model provides, the BBC could not produce so much of the unique British content it is known and loved for.
"Its breadth of other services, and its role as a skills incubator for the wider sector and creative workforce, also hinge on this model. In a climate of increasingly homogenised entertainment, it would be an error to make a globally respected public service broadcaster just another Netflix. Sustainable and fair funding is essential to future-proof the BBC and its unique place in British life.
"The licence fee remains, in our view, the best way to achieve this. Proposed changes such as making the licence fee opt in, or a voluntary subscription, have not yet been properly tested and proven. Any such changes must not undermine the BBC's ability to deliver distinctive, original content, or reduce it to just another streaming service."
A statement on the union website, which represents 80% of BBC staff reads: "The BBC is much more than a licence fee - it's the bedrock of British culture. Whether you're watching sports and drama, getting the latest news or listening to music, nearly all of us use the BBC weekly. The BBC's unique funding model allows it to be a truly public service broadcaster."
However Gary Lineker, once the BBC's highest paid star and former darling of the Corporation before they sacked him from Match of the Day, has called for a "voluntary" licence fee model.
Chris Snowdon at The Institute for Economic Affairs agrees saying subscription to the BBC instead of a licence fee would not mean quality would suffer.
He said: "There is no reason to assume that the BBC will have to 'dumb down'. There is plenty of serious, highbrow programming on commercial and/or subscription channels such as Channel 4, ITV, Sky Arts, Netflix and Amazon. Why? Because lots of people want it - and if they want it, they will pay for it."
Meanwhile a spokesman for the Department for Culture, Media and Sport (DCMS) said: "The government recognises the financial pressures on households and is committed to ensuring the BBC's funding model is sustainable, fair and affordable.
"The government has committed to the licence fee for the remainder of this charter period.
"To support the public with the cost of the TV licence, we will also continue to support the simple payment plan to spread payments through smaller instalments."
Free licences remain available for over-75s on pension credit, with reduced fees for care home residents and blind individuals.
The fee applies to UK households if they download or watch any BBC shows on iPlayer, watch or stream shows live on any other online TV service, or watch or record programmes as they're being shown on any TV channel.
The rules apply to any device, including TVs, laptops, phones and tablets. Meanwhile members of the public are making their voices heard too... on rival TV channels.
Kundan Bhaduri, entrepreneur at London-based The Kushman Group, condemned the mandatory nature of the charge to GB News.
Speaking to the broadcaster, he said: "At £180 a year, the BBC is now going to be more expensive than a standard subscription to Netflix or Disney+, yet unlike those services, it will not be a choice but a compulsion for many even if they have nothing to do with the BBC."
Surveys suggest roughly half of the public, especially younger audiences, have already switched to alternatives.