Compulsory TV Tax for All: What This Could Mean for Viewers

The government is considering introducing a compulsory TV license for all, including those who only use streaming services like Netflix and Disney+.

This proposal comes amid discussions over “securing the future of the BBC,” as the broadcaster faces a visible decline in TV licence revenue.

The BBC has experienced financial strain due to shifting viewing habits, with audiences increasingly favouring on-demand streaming platforms over traditional television.

In response, the national broadcasting service has been forced to make significant budget cuts, including the loss of approximately 150 jobs, as part of wider efforts to manage its funding challenges.

What is a TV licence?

The TV licence is the legal requirement in the UK that funds the BBC’s television, radio and online services. Currently, households must pay an annual fee of £169.50, which is set to increase to £174.50 in April this year. This fee applies to anyone who watches live  television on any channel or streams content via BBC iPlayer, regardless of the device used. 

Typically, individuals who exclusively use on-demand services like Netflix, Youtube or Prime do not need to pay the TV licence fee. However, recent debates have emerged over the principle of TV licensing itself- questioning whether it has become outdated in the era of digital streaming and whether all households should be required to pay for it, regardless of how they consume media.

If these changes go through, students who mainly use streaming services instead of traditional live TV could end up paying an extra fee, adding to their financial strain.

This has fueled confusion among students in Leeds receiving letters about random house checks and unpaid TV license investigations, leaving many feeling uncertain. 

One individual on the Leeds Student Group Facebook stated, “we’ve had multiple letters about our TV licence for ‘not paying’, saying we’re going to have people round but we pay through our Unihomes contract.” Another questioned, “Do most students have to pay for their TV licence? We’re supposedly under investigation and they keep threatening to come visit. I checked our tenancy agreement and we’re responsible for a TV licence. We hardly ever watch TV.” 

The government is expected to review potential reforms in the coming months but for now, the current rules still apply: you only need to pay if you watch live TV or BBC iPlayer.

Words by Hannah Chohan