£11 monthly “Internet Levy” proposed as TV licence alternative

Think Tank proposes an £11 monthly “Internet Levy” as a TV licence replacement

A UK TV licence is required to watch all live TV (or live-streamed TV) in the UK and to access streamed content through BBC iPlayer. In recent years, fewer and fewer citizens have paid for a TV licence, as many have moved to streamed services and away from live television. Others have avoided the TV licence over cost concerns. Now, it has been proposed that the TV licence be replaced by a mandatory “Internet Levy”, or similar tax, with a proposed £11 monthly fee to fund the BBC’s future.

The Social Market Foundation has published a study that claims that 41-63% of all content on the BBC would disappear if licence fee funding were withdrawn. Everything else would allegedly move behind a paywall or to a streaming service. In other words, the BBC as we know it would disappear. The change would also cause 18,000-29,000 job losses and an estimated £2.1-£3.3 billion hit to the UK economy over losses to the UK culture and broadcasting industry and its supply chain.

What is the “Home Internet Levy”

The proposed “home internet levy” is not a Labour government policy, but a solution suggested by the Social Market Foundation. The universal charge could be added to internet bills to ensure the BBC’s future and abolish the TV licence fee. Discounts for Universal Credit and Pension Credit recipients have also been suggested, as has making all UK adults “members” of the BBC. This membership system gives the UK public a greater ability to hold the BBC to account as a public service. It has also been proposed that the BBC be given a “Royal Charter”.

While the proposed “internet levy” prevents UK citizens from avoiding tax (unless they want to forgo internet access), it makes accessing live TV free and guarantees strong BBC funding. This will allow the BBC to continue producing world-class TV and investing in the UK broadcasting economy.

This isn’t policy, but a TV licence alternative is needed

The BBC is primarily funded through TV licence fees, but not all BBC services are TV-based. BBC News operates online without advertising, and the BBC runs many other services. This includes BBC Radio, BBC Sounds (a digital audio platform), and BBC Bitesize (online study resources for school pupils). In some regards, an internet-based fee makes more sense than a traditional TV licence. This is especially true today considering how popular media streaming has become.

The downside of the “Internet Levy” is that it is mandatory. Internet users cannot avoid it. This means that many non-users will need to pay for BBC services. That said, many BBC users currently do not contribute to BBC services. The TV licence can be avoided, which is exactly why an alternative is necessary.

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