Watching Netflix or YouTube could soon require a TV licence

Ministers are considering plans to extend the £180 fee to online streaming platforms to prevent people avoiding payment by watching on phones, laptops and tablets, according to The Independent.

A White Paper on the renewal of the BBC royal charter is expected before Christmas, setting out how the broadcaster will be funded and regulated from 2028.

The proposed changes would expand the fee to services such as Disney+ and Amazon Prime Video, which are currently exempt.

Arrangements under consideration have been dubbed a "YouTube tax" because the site represents the largest online video platform in the UK.

A BBC spokesperson said: "We have consistently argued that the current funding model is outdated and needs reform.

"We will continue to engage with Government to secure a new charter that provides sustainable, sufficient and universal funding so the BBC can deliver for audiences for generations to come."

The Department for Culture, Media and Sport (DCMS) said: "The BBC must be funded by a model that is sustainable and fair to all those that are paying it.

"Through charter review, we are looking at a range of options, including how the licence fee could be reformed, but no final decisions have been made."

BBC director-general Matt Brittin said last month that he wants BBC News to be on streaming sites such as Netflix in a bid to reform how content is consumed and funded.

Brittin previously stated that the broadcaster is "held back" by a licence fee that is "no longer fit for purpose", suggesting a household levy as an option.

Speaking on the Sunday With Laura Kuenssberg programme, Brittin said: "What we need to look at is the current model. You pay the licence fee if you watch live TV or you’re on iPlayer.

"I’d like to see reform that allows us to be where audiences are. I think BBC content should be on Netflix, on YouTube, on TikTok, on Spotify, and Instagram, and everywhere where audiences are."

DCMS officials recommended the broadcaster extend the fee beyond television, describing the existing model as "outdated and no longer fit for purpose" while suggesting the £180 annual price could be reduced.

The department noted that a universal household levy would prove difficult to introduce.

Licence fee revenue has dropped by more than £1 billion in real terms over the past decade, with the BBC 2026 annual report showing sales fell by more than 500,000 during the 2025/26 financial year.

The BBC charter is renewed every 10 years and runs until December 2027.

When do you need a TV licence?

A TV licence is legally required to watch or record live television on any channel or service, including Freeview, Sky and Virgin Media.

Cover is also needed to watch live programmes on streaming services such as Amazon Prime Video, ITVX, YouTube and Netflix.

Anyone using BBC iPlayer must hold a licence to watch live, catch-up or on-demand content.

Viewers do not need a licence to watch on-demand programmes on services such as Netflix, Disney+ or Amazon Prime Video, provided they are not broadcast live.

Watching DVDs or recorded clips on video websites without live broadcasts does not require cover.

Who is eligible for a free TV licence?

Households can qualify for a free TV licence if someone living at the address meets qualifying criteria.

Residents aged 75 or over who receive Pension Credit can claim a free licence instead of paying the annual fee.

Anyone with a valid licence who no longer watches live television or BBC iPlayer can apply to cancel their cover and claim a refund for complete unused months.

Applicants must have at least one full month remaining on their licence, allowing refunds to cover between one and 11 months.