Think tank proposes £11 a month broadband levy to replace the TV licence

A think tank has proposed scrapping the TV licence and replacing it with an £11 a month charge added to every household broadband bill. Under the plan, every internet-connected home in the country would help fund the BBC.

The Social Market Foundation (SMF) set out the idea in a report called Valuing the BBC, published in September 2026. It recommends a Home Internet Levy of £11 a month, or £132 a year. The current licence costs £180 a year.

The big difference is who pays. Today you only need a licence if you watch or record live TV or use BBC iPlayer. The levy would be charged on every home with an internet connection, and there would be no way to opt out.

The levy is a recommendation, not government policy. Broadband providers have not been told to collect any new charge, and the current TV licence rules still apply.

Why the idea has been put forward

The proposal is driven by a fall in the number of people paying. Licence fee evasion has risen from under 7 per cent in 2019 to more than 12 per cent last year. More households now rely on streaming services and no longer watch live TV.

Supporters say the levy would cost households less than the current licence. They also say it would be fairer, because many people use BBC services without paying for a licence. Spreading the cost across all connected homes would mean the bill is shared more widely.

Critics say it would force people who never use the BBC to pay for it. They also say it would push up broadband prices at a time when many households want connection costs to come down. At least one broadband provider is understood to have said it would not take part.

The research was sponsored by the campaign group 38 Degrees. The proposal has reportedly been shared with advisers to the Culture Secretary, Lisa Nandy, but the government has said no decision has been made.

The wider review of BBC funding

The proposal comes during the government's review of the BBC's Royal Charter, the document that sets out what the corporation is for and how it is paid for. The current charter runs until the end of 2027.

The Department for Culture, Media and Sport launched the review on 16 December 2025 by publishing a green paper for public consultation. It set out several options for the future of the licence fee. One was changing which activities and services mean a household needs a licence.

In November 2024, Ms Nandy said the government would keep the licence fee until the end of the current charter period. She said BBC funding after that would be looked at as part of the charter review.

The green paper also raised concerns about how the licence fee is enforced. The government noted that around 75 per cent of prosecutions for TV licence evasion were against women. It also pointed to the effect that letters and home visits can have on households.

What it means for households now

For now, nothing has changed. Households in Southall, Hayes, Ealing, Hounslow, Wembley and across West London still need a licence if they watch or record live TV on any channel or service, or use BBC iPlayer. The annual fee remains £180.

The government is expected to set out its plans for the BBC's future funding before the current charter expires. Any move to a levy or another funding model would need to be agreed as part of the new charter.