BBC's Funding Model Under Scrutiny as Licence Fee Evasion Rises
The BBC's traditional funding model is under scrutiny. Over 10% of UK households are evading the licence fee, leading to a loss of 300,000 payers in 2024. Labour's Culture Secretary, Lisa Nandy, is exploring a 'mixed funding model' to replace the licence fee.
The licence fee currently accounts for 65% of the BBC's funding. The remaining 35% comes from commercial activities, grants, royalties, and rental income. Nandy has proposed a mixed funding model that could combine licence fee, commercial funding, and subscription services. This comes as the licence fee, currently £174.50, is set to increase annually until 2027.
Nandy has ruled out funding the BBC through general taxation. She aims to protect the corporation from political influence. The identity of the person who proposed a mixed financing model in October 2025 remains unknown.
The BBC's future funding is uncertain. With licence fee evasion rising and a potential shift to a mixed funding model, the corporation's financial landscape is changing. Nandy's exploration of new funding methods aims to secure the BBC's independence and sustainability.
