The government says it is considering a limited licence fee reform as part of its launch of the BBC Charter Review.
A Green Paper published today sets out a number of options including changing the scope of what requires a licence – the government says it’s “keeping an open mind” on which activities/services should trigger the requirement. Other options under consideration by the government include introducing differential rates for different types of users, updating the rules on concessions and affordability support while saying it does not plan to remove existing concessions or revisit the over-75s policy. The Licence Fee is currently set at £174.50 per annum.
New commercial revenue streams are now on the table, including whether BBC content or services should carry advertising. Options range from “extensive” advertising across all BBC services, including live TV and radio, to a more limited approach focused on online services such as iPlayer and BBC online content.
DCMS is also canvassing views on a “top-up subscription” model, asking whether audiences would pay an additional monthly fee for a premium and entertainment-focused tier on top of the licence fee. The Green Paper suggests this could start with historic and archive content on iPlayer behind a paywall, potentially expanding over time to a broader subscription offer – with some variants also combining subscription with advertising.
The paper also draws a boundary around what it’s not looking at in this review: it says it is not considering replacing the licence fee with general taxation, a new household tax, or a levy on streaming service revenues. It is also stated that the government could leave the licence fee as it is.
The Charter Review as a whole will shape the BBC’s mission, governance and funding ahead of the current Charter expiring on 31 December 2027, with a new Charter expected to take effect from 1 January 2028. Ministers said responses will inform a White Paper due in 2026, ahead of a draft Charter being published and debated in Parliament.
The culture secretary Lisa Nandy said: “The BBC is fundamental to the health of our nation and we want to make sure that we put it on a firm footing for decades to come.”
The DCMS sets out three main themes: trust and accountability; long-term funding; and the BBC’s role in driving growth and jobs across the nations and regions. Proposals being consulted on include changes to the government’s role in board appointments, updating the BBC’s Mission and Public Purposes (including giving “accuracy” equal weight alongside impartiality), and potential new responsibilities around countering mis- and disinformation, media literacy and workplace conduct.
Responding to the Government’s Green Paper to futureproof the BBC, BBC Director-General Tim Davie said: “We welcome the publication of the Government’s Green Paper and the start of the public consultation on the future of the BBC. “We urge everyone who cares about the success of the UK’s world-leading creative industries to have their say… we want to secure a public service BBC that is independent, sustainably funded for the long term, and meets our audience’s needs.
A public consultation runs until 11:59pm on 10 March 2026.
