The government is set to unveil plans to extend theBBC licence fee to online streaming services in what is unofficially being dubbed a “YouTube tax”.
A white paper on the BBC charter renewal will be published before Christmas and will include proposals on how to overhaul the current funding model to increase revenue and reflect how audiences consume content.
A senior Whitehallo streaming platforms to prevent people dodging it by logging on to the internet
Currently, anyone who uses a television to watch
Currently, anyone who uses a television to watch content must pay the licence fee even if they do not watch the BBC. They also pay for live television on any platform but not playback or delayed television except on BBC iPlayer. Under the proposed changes it would be expanded to cover all other online providers, such as Netflix, Amazon, Disney+, YouTube, which are currently exempt and all streaming content.
It is understood any new cash raised under the plan will need to be spent on reviving local journalism and tackling misinformation, which has fuelled the rise of parties such as Reform UK.
The Whitehallthem to avoid paying currently”. They added: “It’s not fair that people are essentially able to watch television content but avoid the licence fee.”
Theks under the previous administration
Theks under the previous administration. “But now we have had a change of prime minister, we are able to press ahead with the plan to expand it to streaming platforms”, they added
The new arrangements have been dubbed the YouTube tax because the site is by far the biggest online video platform in the UK, with around 55 million users with 79 per cent penetration in the British market.
The proposal would be a means of helping tackle the crisis facing the BBC amid fears that millions of people will stop paying the licence fee, which is currently £180 a year, but free for people aged 75 and older who receive pension credit, and 50 per cent discounted for the visually impaired.
It comes as the BBC has announced
It comes as the BBC has announced that it will launch its news channel on YouTube.
It also follows the BBC director-general Matt Brittin’s comment that he wants BBC News to be on streaming sites such as Netflix in a bid to reform how the broadcaster’s content is consumed and paid for.
Mr Brittin previously said the corporation was being “held back” by its TV licence fee, which was “no longer fit for purpose”, and suggested it could be replaced by a household levy.
Speaking on the BBC One’s Sunday With Laura
Speaking on the BBC One’s Sunday With Laura Kuenssberg, he emphasised the need to modernise the current funding model to ensure it is fair and reflects how audiences consume content.
He 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.
Particularly news, actually, which I think is part
“Particularly news, actually, which I think is part of disinfecting misinformation. It’s our job to be everywhere.”
The most recent figures revealed that around 539,000 fewer TV licences were in force in the year to 31 March 2026. There has been a drop of around two million over the past five years.
The BBC has been facing spending cuts with question marks over flagship programmes such as Newsnight, which recently cut 10 per cent of its staff. Despite collecting around £3.8bn to £3.9bn from the licence fee, the BBC recorded an operating deficit of £121m for 2025/26.
It is estimated that an extra 3
It is estimated that an extra 3 to 4 million households will have to pay the licence fee if it is extended to streaming services.
However, the Whitehall to fill gaps in its spending
“The money needs to be used to help support local journalism and counter a lot of the conspiracy theories and fake news which we have seen help parties like Reform getting elected in different parts of the country,” they said.
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 royal charter is being renegotiated by culture
The royal charter is being renegotiated by culture secretary Lisa Nandy’s Department of Culture, Media and Sport (DCMS) and sets out the arrangements for the governance of the BBC, including how it is funded.
The charter has to be renewed every 10 years and the current one is set to end in December 2027.
A DCMS spokesperson 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.”
