London Daily

Focus on the big picture.
Wednesday, Mar 25, 2026

The BBC only has itself to blame for the licence fee mess

The BBC only has itself to blame for the licence fee mess

For an organisation that likes to be popular these are troubling times for the BBC. This month the Corporation started sending out letters explaining that it had ended the universal exemption from paying the licence fee for the over-75s.
From now on, unless you are in receipt of pension credits (taken as evidence of poverty) you’ll have to stump up £157.50 if you want to watch EastEnders – no matter how old you are.

Needless to say, the BBC’s decision has not been popular; charities for the elderly have been highly critical – the Corporation has been accused of ‘lacking compassion’ and charities predict some pensioners will have to forego essentials like food and heating to keep the telly on.

This is not an argument the national broadcaster wants to have; Auntie is supposed to be warm and generous – not cold and penny-pinching. But, it has to be said, she has only herself to blame.

How the BBC arrived at this point is a story that begins 20 years ago; it was the first flush of the Blair Ascendancy and Gordon Brown was establishing himself as the glowering master of the Treasury.

Labour had promised to stick to the Tories’ spending plans for the first two years but when that self-denying ordinance ended it was time to begin handing out a few fiscal treats. Among them was granting the over-75s free TV licences.

Something of a bauble perhaps (hardly life-changing) but a popular one which generated feel-good headlines. The deal was that the Treasury would reimburse the BBC for the lost revenue.

Fast-forward to 2016 and penny-pinching Osborne is Chancellor and busily practising ‘austerity’. By this stage the licence fee exemption is being claimed by more than 3 million households and is costing the Treasury somewhere around £750 million a year.

It is also the time to negotiate a new licence fee settlement for the BBC ahead of the Royal Charter renewal in 2017. A deal is struck: the government says the licence fee will rise in line with inflation (a relatively generous offer) but in return, from April 2020, the BBC itself will have to shoulder the cost of the exemption if it wishes it to continue.

Which is how the BBC found itself having to tell old people their privileges were being revoked. This is awkward – the elderly are by far the best customers for so-called ‘linear’ broadcasting (ie. turning on the telly and watching what is served up by the schedulers) but Auntie is being squeezed.

For the past several years the BBC’s overall income has been dropping partly because of demographic changes beyond its control: more and more younger people no longer watch traditional TV channels and get their news and entertainment from web-based streaming services. In addition, growing numbers of people on the right of politics are withholding payment of the licence fee because of BBC bias.

If unchecked these trends could slowly strangle the revenue stream which keeps the whole show on the road. This points to the wider, political, context which explains the fix the Corporation is in.

Whilst the Blair government sometimes had its differences with the BBC (remember Andrew Gilligan, the elusive WMDs and the Hutton Inquiry?) essentially the government and broadcaster were soulmates.

For the BBC Blair was Mr Perfect – the political word made flesh if you will – and in those years scant regard was paid to the sensibilities of the Tories. So when the political pendulum swung, the BBC found itself with few natural allies on the government benches.

This wasn’t so evident during the Tory-lite premierships of Cameron and May, but the Johnson administration is another matter entirely; the BBC’s heartfelt opposition to Brexit represents an unbridgeable chasm. And in Dominic Cummings the BBC has a sworn enemy at the heart of government who believes the BBC is permeated by leftist ideology.

One might have thought under the circumstances it would have been wise for the Corporation to adopt an emollient stance. Not a bit of it. In March it broadcast a documentary about Cummings called ‘Taking Control’, fronted by the Newsnight presenter Emily Maitlis.

It was anything but complimentary, portraying Cummings as a sinister manipulator of public opinion for unsavoury political ends. Then came lockdown and Mr Cummings’s notorious trip to the North. What struck me at the time was the BBC’s obsessive pursuit of that story; it amounted to a forceful attempt to unseat the Prime Minister’s senior adviser.

It culminated with Ms Maitlis deciding she was entitled to ‘speak for the nation’ by forthrightly condemning Cummings and the government from the Newsnight presenter’s chair.

No 10 was incandescent after that episode and whilst the BBC publicly chastised Maitlis it deepened an already bitter feud with the broadcaster. Decades of covert hostility to the Conservative cause inside the BBC has poisoned the relationship; the plain truth is that many Tory MPs and millions of their supporters no longer trust the Corporation to be fair and now they sense it’s payback time.

The government has already intimated that it is considering decriminalising non-payment of the licence fee (an announcement is expected in the autumn) and if that happens the BBC reckons it could lose maybe another £350 million annually.

Then, in 2022 there will be a mid-point review of the current Charter with a strong possibility that the whole idea of a universal licence fee, a tax by any other name, might be called into question in the 2027 charter renewal discussions.

There is a strong sense in all this of a reckoning; that flapping noise in the foyer of New Broadcasting House is the sound of political chickens coming home to roost. Meanwhile we can savour the irony of a situation where the BBC is itself imposing a charge on old people.

This upends the usual pattern: traditionally a thinktank, or charity, or activist alerts the BBC to a ‘vulnerable’ group whose needs can only be met by a large infusion of taxpayers’ money.

The Opposition parties pile-in, the Today programme takes up the baton and the whole of the BBC news machine falls into step behind it. The government feels the political heat and – abracadabra! – the money appears.

But this time it is the BBC itself which finds itself in the dock as charities for the elderly call on it to shell-out. To do so would mean hard choices: perhaps that half a million quid a year for that newsreader is a bit high? Perhaps that ex-footballer bloke doesn’t need a million for fronting Match of The Day? Perhaps some of those pointless middle-managers could be let go? The BBC’s response to date has been to announce large-scale redundancies among its frontline journalists – the people who actually do the work.

That will cut costs but do nothing to tackle the underlying problem. The Corporation’s rampant bias stems from a total lack of political diversity among the staff. Until the Corporation admits to that problem, and starts doing something about it, the rift will not be healed. Auntie needs more than cosmetic surgery; she needs to re-discover the meaning of ‘impartiality’ if her relationship with the government is to be repaired.

A BBC that was once again trusted by all would not only be a great national asset but also the best guarantee of the Corporation’s future. As things stand the BBC has made an enemy of the government and will pay the price.
Newsletter

Related Articles

0:00
0:00
Close
Trump Signals Frustration with UK Leadership Amid Diverging Approaches to Iran Conflict
UK Government Takes Control of Hunterston B as Landmark Nuclear Decommissioning Begins
UK Public Inflation Expectations Jump Sharply in March, Raising Pressure on Bank of England
UK Ministers Warn Expanded North Sea Drilling Would Deepen Exposure to Global Energy Volatility
Delayed UK Defence Investment Plan Leaves Suppliers Under Severe Financial Strain
Can Iran Strike the UK? Assessing the Real Military Threat as Conflict Escalates
Sanctioned Iranian Banker Linked to Luxury Marbella Villa Through UK Corporate Structure
Casey Bloys Navigates HBO Max UK Launch, Paramount Integration and Industry Buzz Over Netflix Meeting
Iran Conflict Sparks Sharp Turbulence in UK Mortgage Market, Reaching Pandemic-Era Disruption Levels
Major Donor Urges University of Kentucky to Reconsider Mitch Barnhart’s Post-Retirement Role
United Kingdom Moves to Lead International Effort to Reopen Strait of Hormuz
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
Senior UK Advocate Criticises Barnhart Retirement Appointment, Calls for Reconsideration
UK Finds No Evidence of Direct Iranian Threat to Britain, Says Prime Minister Starmer
Assessing Iran’s Strike Capability and the UK’s Readiness Amid Rising Tensions
NATO Unable to Confirm Iran’s Role in Strike on UK-US Base as Tehran Denies Involvement
University of Kentucky’s Youling Xiong Receives SEC Faculty Achievement Award for 2026
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
Duchess of Sussex Secures ‘As Ever’ Trademark Rights in Australia Ahead of High-Profile Visit
UK Reaffirms Security as Officials Reject Claims of Immediate Iranian Missile Threat
Rising Middle East Tensions Spark ‘Trumpflation’ Debate Over Impact on UK Households
UK Minister Says No Evidence Iran Can Strike Europe Despite Heightened Warnings
British-Iranians Voice Safety Concerns to Authorities as Regional Conflict Intensifies
Confirmed Meningitis Cases Linked to Kent Outbreak Revised Down to Twenty
UK Government Sees No Evidence Iran Can Strike London Amid Rising Regional Tensions
Debate Grows Over Recognition of Indigenous Cultural Icons in the United Kingdom
Iran Missile Launch Toward Diego Garcia Raises Questions After Failed Strike on US–UK Base
Donald Trump Amplifies Viral Satirical Clip Highlighting UK–US Political Dynamics
UK Satirical Show Draws Attention with Sketch Referencing Trump and Prince Andrew
Meghan Markle’s Possible UK Return Sparks Renewed Attention on Sussex Role
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
Northern Lights Expected Over UK Skies Tonight Amid Strong Solar Activity
UK Condemns Iran Missile Strike and Warns Against Threats to British Personnel
UK Warns of Global Flight Disruptions as Iran Conflict Escalates Under Trump’s Leadership
UK Condemns Iran After Missile Strike Targets Strategic Diego Garcia Base
Deadly Meningitis Outbreak in UK Reinforces Urgency of Vaccination Campaigns
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
UK Rules Out Cyprus Base Role in Joint US Self-Defence Framework
UK Ends Hereditary Peerage Rights in Parliament in Historic Constitutional Reform
Lord Walney Warns of Expanding Iranian Influence Networks Within the United Kingdom
Iranian National Among Two Arrested After Attempt to Access UK Nuclear Submarine Base
Deregulation, Artificial Intelligence, and Fraud Laws Reshape UK Financial Services Landscape
×