The BBC’s latest figures reveal a shocking rise in TV licence evasion. The rate peaks at 11.30%, a 30-year record high. This surge shows a big money problem. Evasion caused about £466 million in lost revenue last year. Also, the number of households declaring no need for a licence increased by half a million. This could mean an extra £524 million in foregone income.
This rise in license evasion reflects a big change in viewing habits. More viewers now favor streaming over TV. The £169.50 annual TV licence fee is mandatory. You need it for watching live TV and using BBC iPlayer. Many see it as outmoded in today’s digital age.
The BBC faced financial strain. The strain worsened because the government froze the fee at £159. The freeze lasted until March 2024. This policy aims to provide relief during a cost-of-living crisis. It projected a £400 million loss by 2027. In April 2024, we adjusted the fee to match inflation. Yet, the broadcaster still faces a 30% yearly budget cut. This means it loses over £1 billion each year.
Operational challenges compound the BBC’s financial woes. Capita, the contractor for TV licensing, caused the delays. They pushed the project’s end from June 2024 to December 2025. Also, too few field officers have hurt licence fee enforcement. But the number of visits has recently risen.
The BBC faces daunting challenges. It develops a strategy to preserve assets and make smart allocations. The plan will help it manage smaller resources while keeping service quality. The plan comes as the government discusses the future of the funding model. It will review the current licensing system before the Royal Charter expires in 2027.
Prime Minister Keir Starmer has restated his support for the BBC and its funding model. He supports it until the review. This offers a brief pause. The broadcaster faces rough financial and operational waters.