Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.Jump to contentThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged inAllNewsSportCultureLifestyleThe future of the BBC's TV licence fee is under scrutiny after a significant drop of over half a million licences in the last financial year, bringing the total to 23.3 million. The number of active licences has fallen by more than 2.5 million since the start of the decade, prompting a government review of the BBC’s Royal Charter and funding model. Culture Secretary Lisa Nandy has called the current £180 annual licence fee 'unenforceable' and 'insufficient', with the BBC open to considering 'radical options' for future funding. Potential replacements for the licence fee include a commercial advertising model, a subscription service similar to streaming platforms, or funding through general taxation, though the government has discounted the latter. Another option being considered is a sliding payment scale, as suggested by BBC chair Samir Shah, to address concerns that the current flat fee disproportionately affects lower-income households. In fullFewer people are paying the ‘unenforceable’ BBC licence fee. Here’s what could replace itMore bulletinsThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in

Director general Matt Brittin says funding model ties corporation to the past as number of licences falls by 539,000

Another 500,000 people axe the licence fee as BBC warns 'unsustainble' funding model is broken

The BBC’s licence fee income has dropped by more than £1 million over the past decade