BBC licence fee to be replaced by broadband levy?
September 25, 2026



The BBC licence fee could be replaced with an £11-a-month (€12.78) charge on household internet bills, as the future of the BBC’s funding model is considered alongside the continued shift from traditional broadcasting towards online viewing.

The proposed model would move BBC funding from a charge associated with TV to one attached directly to broadband connectivity. At £132 a year, the proposed charge would be lower than the current £180 colour TV licence, while a 25 per cent concession has also been proposed for people receiving Universal Credit.


The potential change comes as the way people watch TV continues to move from terrestrial and linear broadcasting towards streaming and on-demand services delivered over broadband. With internet connectivity increasingly underpinning access to television alongside public services, education, employment and everyday digital life, the shift could have wider implications for how households access and pay for television.

Reacting to the news, Elizabeth Anderson, CEO of the Digital Poverty Alliance, commented: “Any discussion about the future of BBC funding must recognise that reliable internet access is no longer a luxury, but a necessity. While we welcome the proposed 25 per cent concession for people receiving Universal Credit, we cannot support a new, de facto internet tax that risks making connectivity more expensive for households already struggling to make ends meet. Digital poverty is about more than being unable to get online. It can mean being excluded from the everyday experiences that connect us to one another, from accessing education and employment to taking part in the cultural moments we share as a society. The Traitors’ 2025 final reached almost 10 million viewers, demonstrating the scale of these shared experiences. Community and cultural inclusion should not become a luxury that only those who can afford it can participate in.

“That is particularly concerning when almost one million young people are currently not in education, employment or training, and households are already under significant financial pressure. An additional £11 a month for an internet connection may not sound significant, but for people already struggling to pay essential bills, every additional cost matters. Connectivity should be a gateway to opportunity, participation and community, not another source of financial exclusion. Any reform to BBC funding must therefore put digital inclusion and affordability at its heart, ensuring that getting online does not become more expensive for the people who can least afford it,” added Anderson.

Alongside the implications for affordability, attaching a new charge to broadband bills would also raise practical questions for the connectivity industry, including the role internet providers could be asked to play in administering and collecting the charge.

The potential move from a TV licence to a charge attached to broadband bills reflects a much wider shift in how households access television, as traditional terrestrial broadcasting gives way to on-demand and internet-based services.

Broadband is increasingly the infrastructure through which people access not only television, but essential services and everyday digital life, meaning this would represent more than a change to how the BBC is funded, it would link public service broadcasting directly to the connectivity infrastructure on which an increasingly digital society depends.

Jennifer Holmes, CEO of the London Internet Exchange, added: “As more of our public services, entertainment and everyday lives move online, access to the internet is increasingly essential infrastructure rather than simply another household service. Any changes to the way public service broadcasting is funded therefore raise important questions about how any new charges would interact with the connectivity ecosystem. Connectivity providers are investing heavily to build faster, more resilient networks and extend reliable access across the UK. If a charge were ultimately attached to broadband bills, it would be important to consider the practical role internet providers would be asked to play in administering and collecting it, and the implications this could have for the cost and complexity of providing connectivity.”

“The internet is an open, neutral platform that enables people to access a vast range of services and content. As policymakers consider the future of public service broadcasting, it is important that any changes to its funding model are considered separately from the underlying infrastructure that enables people to get online. Whatever funding model is ultimately adopted, its implications for digital inclusion, affordability and the wider connectivity ecosystem will need to be carefully understood,” concluded Holmes.