The BBC’s new chairman wants to scrap the flat licence fee and link it to your council tax band — here’s what that could mean for households across the UK.
00:00The way we fund the BBC could be heading for a major shake-up, and your home's value might soon decide how much you pay.
00:08Right now, the licence fee is a flat charge of £174.50 for most households.
00:14But the broadcaster's chairman wants to scrap that and bring in something very different, based on your council tax band.
00:21It's a big change that could mean lower bills for some, and higher ones furthers.
00:25We've seen frozen thresholds drag more and more people into higher tax bands.
00:30We've seen council tax go up by 5% for most of the country and for more for parts of the country.
00:36Samir Shah's proposal would tie the fee to the value of your home, so those in cheaper properties could pay less, and those in larger or more expensive homes might pay more.
00:46The charge would be collected as part of your council tax, potentially replacing the current method altogether.
00:52He's ruled out switching to a Netflix-style subscription model, saying the BBC has a duty to serve everyone, not just those who can afford to opt in.
01:01But not everyone is on board with this kind of system.
01:03The licence fee is ultimately an outdated system.
01:06It's a system that was built for the television network and the broadcasting systems of the 1930s, 40s and 50s.
01:14Now that we have Netflix, Amazon Prime and all the other variety of entertainment services, it's completely unnecessary and the BBC should be moving to a subscription-style service.
01:24Licence fee money funds everything from national news and children's programming to local radio and regional TV bulletins.
01:32In many parts of the UK, especially in lower-band homes, the proposal could reduce costs.
01:38But critics worry it could still be unfair for renters or people on fixed incomes, especially in areas where house prices are high but wages are low.
01:47And with evasion rates already rising, some are asking whether this model is really future-proof.
01:52We live in a world now where, frankly, the number of entertainment options is absolutely vast.
01:57Many of them are much, much cheaper than the BBC.
02:00And critically, if we really do believe that the BBC is the pride of Britain, the best of Britain, then people should pay for it and people will pay for it.
02:08And I think it's time we move to that subscription service for the BBC.
02:11This isn't a done deal yet.
02:12The BBC says it's just a proposal.
02:15Any change would need sign-off from the government and a full public consultation.
02:19But with growing debate around how the corporation is funded, many agree the current system can't last forever.
