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Culture Secretary refuses to rule out making Netflix and Amazon Prime users prop up licence fee

Lisa Nandy rejected funding the BBC through a charge on streamers or direct taxation but declined to say whether streaming site users would be charged to help fund the broadcaster.

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Culture Secretary Lisa Nandy.
Culture Secretary Lisa Nandy. Picture: Alamy

By Jacob Paul

Culture Secretary Lisa Nandy has refused to rule out making Netflix and Amazon Prime subscribers pay the licence fee to protect the future of the UK's beleaguered public service broadcaster.

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Speaking in the House of Commons on Thursday, Ms Nandy rejected funding the BBC through a charge on streamers or direct taxation. 

However, she declined to say whether the licence fee would be extended to apply to streaming.

“We have been very careful not to get drawn into speculation about the future funding arrangements for the BBC, except to say that, we have ruled out a levy on streamers, and we have also ruled out direct taxation going to fund the BBC, because of the need for the BBC to retain its independence,” Ms Nandy said.

Her remarks came in response to Tory MP Bradley Thomas, who asked whether she could “rule out extending the BBC licence fee to streaming services” during Culture Questions in the Commons.

It follows reports in May suggesting streaming viewers could be forced to pay the TV licence fee as more and more viewers turn to streaming amid a decline in license fees sold.

Read more: BBC could make the rich pay more in latest 'progressive' license fee shake-up

Read more: ‘Too many incidents’ at BBC, says Culture Secretary in wake of BAFTA racial slur broadcast

More and more people are turning to streaming.
More and more people are turning to streaming. Picture: Getty

But the Government is also reportedly sceptical about moving to an advertising or subscription-based funding model. It comes after the licence fee, a vital stream of funding for BBC, was raised to an annual cost of £180. 

Earlier, the culture secretary told the MPs earlier she had “concerns” after the BBC announced more than 500 job cuts. 

The BBC has around 21,500 full time employees. Philippa Childs, the head of media and entertainment union Bectu, said the cuts are "far from ideal", with 200 job losses in the news division alone. 

The licence fee, which provides the BBC with funding, is increased based on the annual Consumer Price Index inflation rate.

The fee, which currently costs £174.50, rose by £5.50 to £180 a year in April.

Last year, it increased by £5 and £10.50 in 2024 following two years of frozen fees."The government recognises the financial pressures on households and is committed to ensuring the BBC’s funding model is sustainable, fair and affordable," the Department for Culture, Media and Sport said in February.