The BBC has lost over £1 billion after a record number of families refused to pay the license fee, according to a parliamentary report. The Public Accounts Committee warned that mass cancellations and rising evasion are eroding the broadcaster’s main source of income. The committee cited the BBC’s struggle to maintain its funding model despite stepped-up enforcement efforts, which saw two million home visits last year, yet fewer prosecutions. The license fee, currently £174.50, is a legal requirement for households to watch or record live programs on any broadcast service or use BBC iPlayer. However, millions of UK households now say they no longer use the broadcaster’s services, a parliamentary report has found.
The financial crisis comes as the BBC prepares for talks with the government over the future of the license fee, which is set out in its Royal Charter, the BBC’s foundational legal document dating back to 1927, which expires at the end of 2027. Culture Secretary Lisa Nandy has said the charter review would begin “imminently.” The debate over funding has sharpened after recent scandals. Earlier this month, the BBC apologized to US President Donald Trump after a documentary included a misleading edit of a speech he delivered before the 2021 Capitol Hill riot, which prompted the resignations of Director-General Tim Davie and BBC News chief Deborah Turness. The White House had previously condemned the broadcaster as a “Leftist propaganda machine” and “100 percent fake news,” accusing it of being “purposefully dishonest” in its portrayal of Trump.