Daily Mail: Richer homes may have to pay more for TV licences

Story from Daily Mail:

The BBC's director-general says he is open to 'reform' of the licence fee and making it 'more progressive', as he laid out his plans for the corporation's future.

Tim Davie also indicated potential changes to the controversial way the broadcaster enforces payment of the TV licence, saying it needed to be 'fair and proportionate'.

His comments appear to open-up the possibility for something like a means-tested payment method for the licence fee, where the rich pay more than the poor. This could see concessions made for people on benefits.

Mr Davie's comments on the enforcement regime will also lead to speculation about whether the current system of criminalising licence fee evasion could be abandoned.

Giving a major speech yesterday morning, Mr Davie also revealed he will launch the BBC's 'biggest-ever consultation process' next year so the public can 'drive the debate' on its future.

This comes as the BBC's boss confirmed the corporation now needed to make an extra £200million in annual savings on top of the £500million previously announced. He also admitted there more job cuts coming at the corporation.

In a speech, hosted by the Royal Television Society, he said: 'We are not defensive about the future. We will need reform.

'With that in mind, we will proactively research how to reform the licence fee post-2028 – looking at its scope, how it could be more progressive, and making sure its enforcement is fair and proportionate.'

Saying that the BBC's 'most important relationship' was with the public, he added: 'So starting next year, and well ahead of the new Charter, we will open up our biggest-ever consultation process so that the public can inform and drive the debate on the future BBC.

'Our aim is to make contact and get feedback from hundreds of thousands of people, and we do so with an open mind.'

Mr Davie, speaking to an audience of industry leaders as well as his own staff, criticised the real terms cuts the BBC has been subjected to by Government in recent years.

He claimed that to 'strip money' from the corporation during a period of 'digital transition' had been 'particularly short-sighted'. He said below inflation settlements had 'chipped away at our income over many years'.

Mr Davie also said he would need to discuss 'a long-term funding solution' for the BBC World Service 'that comes from central government budgets'. He added 'we cannot keep asking UK licence fee payers to invest in it when we face cuts to UK services'.

The licence fee has had a two year freeze at £159, but last year the Government announced a lower rate of inflation will be used to increase the household charge from April to £169.50 a year.

There have been growing calls for a fairer payment system for the licence fee that takes into account people's wealth, with Greg Dyke and David Dimbleby among those backing the idea of doing this.

According to BBC sources, the corporation does not have any preferred alternatives in place, but wants to open up a debate about future funding methods.

Answering questions about potential reform of the licence fee, Mr Davie said agreed that the licence fee 'needs reform' but he still thought of it as 'precious'.

He also pointed out that those over 74 who get Pension Credit can apply for a free TV licence. He said he was open to looking at 'what are the other options'.

Mr Davie added that any new system 'doesn't necessarily imply means testing' saying there were 'a number of ways you could make it progressive'.

He added: 'I just think the idea we just sit where we're at is the wrong one.'

The BBC's current criminal offence for non-payment of the licence is hugely controversial, with women disproportionately convicted for the offence.

His comments about a fairer enforcement system come after the culture secretary Lucy Frazer has spoken about her concerns over the criminal prosecution model of enforcement.

As part of his talk the BBC top boss indicated that the corporation should be looking to make more partnerships with the major 'tech players' to help boost its under pressure finances.

He claimed the corporation was a 'small fish' in the 'trillion-dollar, shark-infested waters' that is the global media market'.

The BBC is also looking to do more commercial deals with major US media companies to help fund big budget programming. This comes as Doctor Who was recently given a huge cash boost by entering into a deal with Disney, which lets the US company air the show outside the UK and Ireland.

Mr Davie also announced a string of new initiatives.

This included plans to 'connect up' the corporation's digital services, such as iPlayer and BBC Sounds, into a more fully integrated product.

There are also plans to 'double down' on its BBC Verify fact checking service, launch a new BBC investigations brand, to use AI 'on our own terms' and employ 'unique ethical algorithms'.

He added that more than 60 per cent of the BBC's production would outside of London by 2026 as well as 50 per cent of its radio and music production by 2027.