BBC draws up plans to cut TV licence fee by £36 a year under new German-style household levy

From the Newshound archive · first published 19 September 2026.

New BBC Director General Matt Brittin has proposed replacing the £180 annual TV licence with a mandatory household levy that would cut the cost of watching television by 20 per cent. The plan mirrors Germany's broadcasting funding model and would apply to every household, regardless of whether they currently hold a licence. However, the proposal carries a sting: the 2.5 million households that have cancelled their licences since 2020 would be forced to pay again. Ministers are reportedly wary of any change that opponents could brand a new 'TV tax'.

A mandatory levy would drag back 2.5 million households that stopped paying the licence fee since 2020.

State pensioners born before September 1952 may qualify for a free TV licence if they claim Pension Credit, which must be actively applied for from the DWP.