The BBC has lost more than £1 billion in revenue due to a record number of UK households refusing to pay the license fee, according to a parliamentary report. The House of Commons Public Accounts Committee warned that mass cancellations and rising evasion are eroding the broadcaster’s main source of income. The committee noted that despite a significant increase in enforcement efforts, including two million home visits last year, the BBC has not effectively tackled non-payment issues. The license fee, currently £174.50, is a criminal offense under UK law, and it still provides around two-thirds of the BBC’s budget.
The report also revealed that 3.6 million households claim they do not need a license, an increase of 300,000 from the previous year. Additionally, 2.9 million viewers are using the services without paying. The financial crisis has come at a critical time as the BBC prepares for talks with the government over the future of the license fee, which is set out in its Royal Charter, dating back to 1927. Culture Secretary Lisa Nandy has indicated that the charter review would begin imminently.
The debate over funding has intensified after recent scandals, including the BBC’s apology to US President Donald Trump following the release of a misleading documentary. This incident led to the resignations of Director-General Tim Davie and BBC News chief Deborah Turness. The White House had previously condemned the BBC as a ‘Leftist propaganda machine’ and ‘100 percent fake news,’ accusing it of being ‘purposefully dishonest’ in its portrayal of Trump.