The BBC relies on the fee to fund its activities, and different Tory governments have mulled over whether or not to abolish it and fully commercialise television, radio and streaming, or take a different approach to funding public service broadcasting.
The BBC’s charter is up for renewal in 2027 so that is likely to be the time when any major changes to funding occur.
Culture secretary Lisa Nandy
PA Wire
There have been reports that Keir Starmer, the prime minister, has considered making users of streaming service such as Netflix and Disney+ pay the licence fee.
Other revenue options would include taxing streaming providers, imposing fees on BBC radio listeners and permitting the BBC to show advertisements.
In addition, iPlayer viewers might be required to pay a membership fee, and a tier structure could be established so that lower-income households would pay less than their higher-income counterparts.
Alternatively, the licence fee cost might be kept down by means of improved enforcement and other changes, a source told Bloomberg.
But what are the current rules for watching Netflix and Disney+, and do you need a TV licence to stream on-demand shows?
Do you need a TV licence to watch Netflix and Disney+?
According to the UK Government website, you can watch streaming services such as Netflix and Disney+ without a TV licence and on-demand TV services like Amazon Prime Video and All 4. However, you need a TV licence to watch or record live TV on any service.
Nothing has changed for the time being if you only watch TV and film via on-demand services that are not provided by the BBC.
Who is eligible for a free TV licence?
Not everyone is required to pay for a television licence. Pension credit recipients of 75 years of age and beyond are eligible to apply for a free licence, and blind (or seriously sight-impaired) people can obtain 50 per cent off.
Some people in residential care homes, supported housing or sheltered accommodation who are disabled, over 60 or retired can pay at a reduced rate of £7.50 a year.