The BBC has warned that its finances are under growing strain after the number of households paying the licence fee dropped more sharply than expected over the past year. According to the corporation’s annual report, there are now 23.3 million TV licences in force, down by 539,000 from a year earlier, a steeper fall than the 300,000 decline recorded in the previous year.
Director general Matt Brittin said the broadcaster was at a “moment of real jeopardy” and argued that the current funding system ties the BBC to an older media era. The report said the corporation had already been concerned for months about the speed at which households were opting out, and it described a “steeper projected decline in licence fee sales.” Although 94% of people in the UK still used the BBC each month, fewer than 80% of households were contributing to the licence fee.
The broadcaster said changing viewing habits were having a “significant adverse impact” on income, while a relatively quiet sports calendar also limited its ability to use major events to attract or retain payers. The BBC is now planning substantial savings, with as many as 2,000 job losses and about £500m in cuts over three years. It is also considering changes to the licence fee, including the possibility of extending it to people who use streaming platforms such as Netflix, Disney Plus or Amazon Prime, with the charge potentially attached to those subscriptions. Another option, a household levy, has been discussed by Brittin but ruled out by ministers.
Despite a small rise in income after the fee increased to £174.50 in April last year, the BBC reported another operating loss, its third in a row, with a deficit of £121m in 2025-26. The corporation said licence fee income was around a quarter lower in real terms than in 2017, when its current royal charter was agreed. Brittin said he was carrying out a root-and-branch review of what the BBC makes as it looks to adapt to a rapidly changing media environment.
Source: theguardian.com
