The BBC television licence fee could be abolished but replaced with a new £11 monthly charge that will automatically be added to household broadband bills.
Ministers are understood to be examining a proposal that would see the levy, which funds the public broadcaster, overhauled.
The plan, dubbed the “Home Internet Levy,” would mean every home with an internet connection contributes to funding the corporation, regardless of whether anyone in the household tunes into live television.
Under the scheme, the current £180 annual TV licence would be scrapped entirely, with the new cost instead collected through broadband providers.
Licence fee could be abolished under plans being considered by Labour
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GETTYThe proposal originates from research conducted by the Social Market Foundation, a think tank that has been investigating the long-term sustainability of the BBC’s funding model.
Its report highlights a sharp deterioration in licence fee compliance, with non-payment climbing from below seven per cent in 2019 to more than 12 per cent in the past year.
According to The Sun, the document outlining the Home Internet Levy has already been shared with and discussed among advisers to Culture Secretary Lisa Nandy.
For those currently paying the full licence fee, the switch could bringing annual costs down to roughly £132, compared with the present £180 charge.
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However, the levy would also capture households that presently avoid paying altogether, including cord-cutters who exclusively use streaming services and those who simply evade the fee.
The report acknowledges that such a universal charge risks disproportionately affecting lower-income families, though it suggests a social tariff discount mechanism could be introduced to shield vulnerable households.
However, another proposal would introduce a monthly “News and Culture Levy” of £2.30, layered on top of the existing licence fee rather than replacing it.
That smaller charge is designed to address a looming financial shortfall projected to exceed £800million annually within a decade if current payment trends persist.
The BBC currently generates £3.8billion annually through the licence fee, money that funds flagship programmes such as EastEnders, Strictly Come Dancing, Match of the Day and the Proms.
Corporation bosses have repeatedly sounded the alarm that beloved shows and thousands of roles could be axed unless the deepening funding crisis is confronted.
GB New has contacted the Department for Culture, Media and Support (DCMS) for comment.