BREAKING: BBC looking at licence fee overhaul as 300,000 households stop paying

The BBC has admitted it is looking into a licence fee overhaul as 300,000 more households have stopped paying it.

The Annual report published today says the battle with its streaming rivals like Netflix has created “a moment of real jeopardy for the sector”.

BBC Chair Samir Shah says in the annual report: “The fight is on, and it is vital we now think very carefully about the kind of media environment we want for the UK.”

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He added they were searching for “the best future funding model for the BBC”.

“I have already set out some views on this and the board will be saying more over the coming months,” he said. “But all of us are clear that we want to make sure we protect the BBC as a universal service and help it not just to survive, but thrive, for a generation and more.”

Licence fee income increased slightly year on year, totalling £3.8bn in 2024-25. However, the small rise was down to the 6.7% inflationary increase in the fee to £169.50 a year.

“The current collection method remains fair, effective, and good value for money,” the report said. “As we approach the end of the charter, we will proactively research how we might reform the licence fee to secure the benefits of a well-resourced, universal BBC of scale for the long term.”

The annual report also revealed the highest paid presenters on the BBC. And the Director general Tim Davie also spoke about the challenges they face for crisis hit programme MasterChef.