Licence fee evaders are shutting the door on inspectors – making viewers who do pay lose faith in the system
Recent findings by the Public Accounts Committee (PAC) indicate that faith in the licence fee will “ebb away” unless the BBC restructures a deteriorating enforcement system. This system has contributed to a loss of £1.1 billion in non-payment last year, reports BritPanorama.
The PAC has called for urgent modernisation of the licence fee collection process, currently reliant on traditional house visits. The BBC has observed that fewer individuals are willing to engage with inspectors compared to five years ago, hampering enforcement efforts.
The report reveals that the combined issue of licence fee evasion and households opting not to purchase a licence constituted over £1.1 billion in potential lost income for the fiscal year 2024–25. Currently, evasion stands at 12.5%, equating to around £550 million, while 3.6 million households reported they did not require a licence, leading to an additional loss of £617 million.
While inspectors made 2 million visits to unlicensed homes last year—a significant increase of 50% from the previous year—this has not resulted in increased sales of licences or successful prosecutions. In fact, prosecutions have decreased by 17% by December 2024, continuing a downward trend that has persisted since 2017.
‘The broadcaster will see faith in the licence fee system ebb away’
The PAC warns that “without visible enforcement, licence fee payers who do comply may start to question the fairness of the system.” The report criticises the BBC for not capitalising on opportunities to digitise the licence fee, which could enhance cost efficiency.
MPs have urged the BBC to update its approaches to licence fee collection and enforcement, particularly by adapting to the realities of monitoring online viewing habits. The BBC could potentially link access to its iPlayer service to a monthly charge, which could significantly reduce the rising £166 million expenditure on mailings and paper licences. However, the BBC stated such measures are not practical at present.
Licences are currently tied to household addresses rather than individual viewers, preventing the BBC from associating iPlayer users with licence holders directly. The BBC’s public service commitment to “universality” has restrained it from implementing a paywall that could exclude certain individuals from accessing BBC News. Nonetheless, 60% of licences are now issued digitally, indicating some progress.
PAC chairman Sir Geoffrey Clifton-Brown described the BBC as “an organisation under severe pressure.” He asserted that the traditional enforcement methods of household visits are yielding diminishing returns, particularly in a competitive landscape. “Our report shows that without a modernised approach focused more on online viewing, the broadcaster will see faith in the licence fee system ebb away,” he noted.
‘All the BBC seems to be able to do is send threatening letters’
Silver Voices, a group advocating for older individuals, reported a spreading campaign of “non-cooperation” concerning licence fee payments, particularly among those over 75. The director, Dennis Reed, highlighted that many individuals who previously held free licences are now resisting payment, undermining the enforcement system.
Reed remarked: “There are several hundred thousand people who previously had free licences who are still refusing to pay five years on. Enforcement is being made a mockery of by an unofficial amnesty for not paying.” He emphasised that threatening letters have become the norm, with one member receiving 57 without any follow-up enforcement visit, fostering a belief among some that there are no consequences for non-payment.
A BBC spokesperson reiterated to the PAC its acknowledgment of the need for reform, stating: “We are actively exploring all options that can make our funding model fairer, more modern, and more sustainable, but we’ve been clear that any reform must safeguard the BBC as a universal public broadcaster.” The BBC maintains that TV Licensing is committed to collecting the licence fee and enforcing the law efficiently, as highlighted by the National Audit Office’s reports.
