A proposed shake-up of the BBC TV licence system could see millions of UK households paying more for their entertainment, particularly those subscribed to multiple streaming services. The government is considering a new levy on major platforms such as Netflix, Disney+, Amazon Prime Video, and Apple TV, which could add £174 per year on top of existing subscription fees.
With many families already struggling with the cost of living crisis, the possibility of an additional charge for accessing streaming content has raised concerns about affordability and fairness. While Whitehall sources have dismissed the so-called “Netflix tax” as speculation, they have not ruled it out entirely.
How Could the TV Licence Rule Change Affect Viewers?
Under the current system, UK households are required to pay £159 per year for a BBC TV licence if they watch live television or use the BBC iPlayer. However, as more people shift towards on-demand streaming, the number of licence payers has declined, putting the BBC’s funding model under pressure.
To counteract this, the government is exploring new ways to generate revenue. One proposal involves introducing a compulsory levy on major streaming platforms, meaning that viewers who subscribe to multiple services could see their overall entertainment costs soar.
According to recent figures, a standard subscription to popular platforms costs:
- Netflix (HD plan) – £131.88 per year
- Disney+ (ad-free) – £89.90 per year
- Amazon Prime Video (ad-free) – £130.88 per year
- Apple TV+ (4K, ad-free) – £107.88 per year
If an additional BBC levy of £174 were introduced, households subscribing to all four of these services could be paying a total of £607 per year for entertainment—before factoring in other services such as Now TV, Paramount+, or premium sports packages like Sky Sports and TNT Sports.
Government Struggles to Tackle Licence Fee Evasion
The potential changes come as the government grapples with rising licence fee evasion rates, which reached 10.3% in 2022-23, according to a House of Commons report. With fewer households paying the licence fee, the BBC has been forced to explore alternative funding models to maintain its programming and services.
Labour Culture Secretary Lisa Nandy has described the current licence fee system as “insufficient” and “deeply regressive”, indicating that the government is committed to reforming the way the BBC is funded.
Meanwhile, the latest Ofcom data shows that approximately 20 million UK households are subscribed to at least one streaming service, with Netflix alone boasting 17 million subscribers. This shift in viewing habits has made traditional licence fee enforcement increasingly difficult, prompting discussions on whether a levy on streaming services could provide a more sustainable funding model.
Could a ‘Netflix Tax’ Become Reality?
While government sources have downplayed reports of an imminent streaming levy, they have not ruled it out entirely. Some policymakers argue that a universal fee for all UK households, regardless of whether they watch the BBC, would be a fairer approach than the current system.
However, critics of the proposed changes argue that forcing streaming subscribers to pay more—particularly when many do not watch BBC content—would be unfair and unpopular.
As discussions continue, the government faces a difficult balancing act:
- Maintaining BBC funding without further alienating viewers who have moved to streaming platforms.
- Addressing rising evasion rates while ensuring that any new charges are seen as fair and proportionate.
- Avoiding excessive financial burdens on households already struggling with the cost of living crisis.
What Happens Next?
With no final decision yet made, the future of BBC licence funding remains uncertain. The government is expected to review alternative funding models, including:
- A universal household levy that would replace the current TV licence fee.
- A subscription-based model that would make BBC content optional.
- A streaming levy targeting platforms like Netflix and Disney+, passing costs onto subscribers.
As the debate continues, UK households will be watching closely to see whether they face higher entertainment costs in the near future. If a new levy is introduced, the days of choosing streaming services freely without additional costs could soon be over.
