Labour considering scrapping TV licence fee for new alternative

An alternative could end up being a win-lose

As per a report from The Sun, Andy Burnham's Labour Party is looking at replacing the BBC licence fee with an alternative which could cover internet usage too.

Currently, households pay £180-a-year to enjoy live television with around 85% of this money going straight to the BBC.

However, one proposed alternative could see a £11-a-month internet charge added straight onto household broadband bills.

This proposal comes via the Social Market Foundation think tank, which has been exploring alternatives to the current way of funding the BBC.

This change would mean that every home with an internet connection would be automatically funding the BBC, regardless of whether residents watch live TV or not.

Of course, this is but one of the proposals suggested as part of the government's ongoing Charter Review into the future of the BBC.

These new funding alternatives ideas come as the TV licence fee continues to see year-on-year decreases in the number of people paying for it.

Evasion has also gone up from 7% in 2019 to 12% last year.

The Sun reports that the "Home Internet Levy" has already been discussed with advisers to Culture Secretary Lisa Nandy.

This proposal would technically work out cheaper for those who already pay the licence by £48, although, for those who don't pay it, this would be a sizeable addition to household bills.

Another option being considered is the smaller "News and Culture Levy" which would see £2.30 added on top of the existing licence fee to plug the current drop in revenue.

A Department for Digital, Culture, Media & Sportspokesperson said: “The BBC must be funded by a model that is sustainable and fair to all those that are paying it.

“Through Charter Review, we are looking at a range of options, including how the BBC can operate more efficiently, generate more commercial revenue, and how the licence fee could be reformed.”