A UK parliamentary committee has warned that the BBC faces “severe pressure” to maintain relevance across all demographics, citing its failure to adequately address escalating rates of TV license fee non-compliance.
The House of Commons public accounts committee suggests the BBC’s long-term viability is at risk unless it enhances its appeal to younger audiences and other segments of the UK population who feel marginalized.
MPs report that the corporation is now forfeiting over £1.1 billion in potential revenue due to license fee evasion and individuals claiming they do not require a TV license.
Sir Geoffrey Clifton-Brown MP, chairman of the committee, stated that their report underscores how “the ground is shifting beneath the BBC’s feet.”
In response, the BBC acknowledged the need for license fee reform, but emphasized that any modifications must “safeguard the BBC as a universal public broadcaster.”
The committee noted that young people utilize BBC services significantly less than older demographics, jeopardizing the broadcaster’s mission to serve all audiences as younger viewers increasingly opt for alternative media providers.
“The BBC is currently a trusted institution, but its long-term relevance will depend on how well it reflects and engages with its audiences,” the report stated.
“Younger people use the BBC less than older audiences and perceive it as less relevant to their interests.”
The BBC’s connection to other demographic groups across the UK is also facing challenges, the report added.
“We are also concerned that decisions labelled as ‘local’, such as moving operations to Manchester or Birmingham, risk overlooking the identity and needs of smaller communities, especially in radio,” it stated, referencing the merging of certain programs across local radio stations.
In his statement, Sir Geoffrey remarked: “The BBC is an organisation under severe pressure. Its own founding aspiration to be a truly universal broadcaster reflecting all its viewers means that this pressure, from both within and without, is inherent in its mission.”
The committee also drew attention to figures from the latest BBC accounts, indicating that license fee evasion has increased from 12% to 12.5%—representing up to £550 million in lost revenue.
Furthermore, the 3.6 million individuals who claimed they did not require a TV license, for reasons such as not watching live television, represented a potential £617 million loss.
“Declining household participation and rising evasion has not been successfully tackled; BBC users not purchasing a licence is not fair to willing licence fee payers,” the report asserted.
The total of £1.17 billion for 2024/25 was up from £990 million the previous year, marking an 18% increase.
This rise occurred even though enforcement officers conducted 50% more visits to unlicensed households in the past year, according to the MPs’ report.
A BBC spokesperson conveyed: “As was made clear in the committee session, the licence fee needs reform.”
“We are actively exploring all options that can make our funding model fairer, more modern, and more sustainable, but we’ve been clear that any reform must safeguard the BBC as a universal public broadcaster.”
The BBC is poised to commence negotiations with the government regarding its next royal charter, which outlines the terms of its funding and operational existence.
The BBC statement concluded: “We look forward to engaging with government, parliament and the public on the next charter to secure the long-term future of a publicly funded BBC that serves and delivers for everyone.”
This report surfaces during a period of instability within the BBC, following the resignations of its director general and head of news in the wake of criticism regarding editorial decisions, including alterations made to a Panorama segment featuring a speech by Donald Trump, who has threatened to sue for up to $5 billion (£3.8 billion).
The departure of board member Shumeet Banerji adds to pressure on Shah, the BBC’s media and culture editor writes.
Shumeet Banerji, an ex-management consultant, leaves the BBC board and criticises its governance.
The prime minister also says an “independent trusted BBC is really important and should be defended”.
Hertfordshire Police said the man had been released on bail under investigation.
The letter is reportedly also sent to the BBC’s US partners, and seeks to find out if any US rules were broken.