UK MPs want a cheaper TV licence that covers your phone

MPs want the TV licence to cover phones, tablets and laptops from 2028, in exchange for a lower fee.

The Digital, Culture, Media and Sport Committee made the call in its report on the BBC Royal Charter review, published on Thursday (1 October).

It recommended that the government set out steps in its upcoming White Paper to broaden the licence fee before the new Charter starts in January 2028.

The committee said the reformed fee should, at a minimum, no longer depend on a particular device or activity. It added that the government should cut the cost of an individual licence, provided this does not threaten the BBC’s income.

The licence currently costs £180 a year, following a CPI-linked increase on 1 April 2026.

Households need one to watch or record live TV on any channel, to stream live TV on services such as ITVX, Sky Go, YouTube, Amazon Prime Video, Now or Netflix, and to use BBC iPlayer.

Watching on-demand content from other streaming services does not require a licence.

The BBC told the committee that 94% of people use its services every month, but only 80% of households pay for a licence.

Director-General Matt Brittin said the BBC had lost between £1.2 billion and £1.3 billion in licence fee funding over the past decade. He attributed 40% of that shortfall to fewer households paying.

The committee concluded that a broader licence would be an easier sell to the public if it came with a lower individual price.

It also urged the government to keep an open mind on a household levy, which every home would pay regardless of what it watches. Germany, Switzerland and Austria already fund their public broadcasters this way.

Brittin told MPs a levy would save the BBC about £190 million a year in collection costs. He said it could also open the door to a lower fee and concessions for lower-income households.

The government has already ruled out a new tax on households.

“At a time when the cost of living is biting for a lot of people, I think a new tax on households is too challenging to ask most families to accept, so we are looking at a range of options for how we could potentially expand the scope,” said Lisa Nandy, Secretary of State for Culture, Media and Sport.

ITV and Sky told the committee they should not have to police a new licence regime. Trade body COBA said its members should not have to enforce the fee on the BBC’s behalf.

“The government must ensure the broadcaster has a sustainable and universal source of funding, while the BBC can play its part by sweating its assets and boxing clever for the licence payer by ending illogical practices such as outbidding commercial rivals for overseas hits such as Suits, Schitt’s Creek and Scooby Doo,” said Caroline Dinenage, Chair of the Digital, Culture, Media and Sport Committee.

The government is finalising its proposals for the next Charter, which will govern how the BBC operates and raises money from 2028.

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