Ministers have officially signaled the death of the license fee after deciding to review the BBC’s 100-year funding model.
In the first major update to Britain’s broadcasting laws in nearly 20 years, the government said it would set a schedule for reviewing the license fee in the coming months, during which alternatives will be considered.
A 42-page white paper says there are “clear challenges to the sustainability of the license fee” on the horizon, not least the streaming revolution, which has led to fewer people choosing to pay for BBC services.
Ministers warned that if no action is taken to revise the funding mechanism, a growing number of people who refuse to pay the fee could “significantly” increase the fee by £ 159.
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