BBC loses more than 500,000 licence fee payers after year of controversies

THE BBC lost more than half a million television licence fee payers over the past year, according to its latest annual report, marking the steepest annual decline since the Covid-19 pandemic and bringing the number of licence holders to its lowest level since 1999.

The report, released on Tuesday, shows that 23.3 million TV licences were in force during the financial year, down by 539,000 from the previous 12 months. Since the start of the decade, the number of licence fee payers has fallen by 2.7 million, the Telegraph noted.

The decline follows a turbulent year for the broadcaster, which was rocked by a string of editorial controversies. Among them was a Panorama programme that altered a speech by US President Donald Trump, creating the impression that he had encouraged supporters to storm the US Capitol in 2021.

Another major controversy centred on the documentary entitled ‘Gaza: How To Survive A Warzone.’ An internal review concluded that the programme breached BBC editorial standards on accuracy because it failed to disclose that the child narrator’s father held a position in the Hamas-run government.

The controversies ultimately led to the resignations of Director-General, Tim Davie, and BBC News Chief Executive Officer, Deborah Turness.

Despite the fall in licence fee payers, the corporation’s licence fee income rose by £36 million to £3.88 billion during the year, helped by an increase in the annual licence fee to £180 per household. Even so, the BBC said the current funding model remains insufficient to sustain a universal public service broadcaster.

BBC new Director-General, Matt Brittin, said the decline in licence fee sales had added to the corporation’s financial pressures, alongside rising operating costs and a difficult commercial environment. He said the broadcaster had already begun introducing changes to respond to those challenges.

The annual report also highlighted the impact of the controversies on public confidence. It said a series of high-profile incidents had damaged perceptions of the BBC’s impartiality, while weekly use of BBC News among adults fell from 74 percent to 72 percent over the past year.

Brittin acknowledged the broadcaster must remain accountable when mistakes occur, saying the BBC should admit errors, apologise and respond with full transparency while remaining open to public scrutiny.

The report attributes much of the decline in licence fee sales to changing viewing habits, with more people opting for streaming services and YouTube instead of live television. Group Chief Financial Officer, Bérangère Michel, said the trend was expected to continue and could even accelerate as audiences move further away from traditional TV.

As part of the government’s ongoing Charter Review, ministers are considering proposals that could require subscribers to streaming platforms such as Netflix, Amazon Prime Video and Disney+ to contribute to the licence-pfee system. Brittin said reviewing the funding model was logical given that audiences increasingly consume BBC content across multiple platforms.

The BBC also disclosed that TV Licensing officers visited 1.8 million addresses across the UK during the year, identifying about 55,000 households watching live television without a valid licence. The overall licence fee evasion rate for 2025-26 stood at 11.8 percent.

Highest-paid presenters

The report includes details of the corporation’s highest-paid presenters. Scott Mills topped the list with earnings of between £745,000 and £749,999 for hosting the Radio 2 breakfast programme and Eurovision coverage before he was dismissed in April following allegations about his personal conduct.

Greg James ranked second with earnings of between £440,000 and £444,999, while Northern Ireland broadcaster Stephen Nolan received between £425,000 and £429,999. Laura Kuenssberg emerged as the BBC’s highest-paid journalist and highest-paid woman, earning up to £409,999, while Alan Shearer remained the highest-paid BBC Sport personality with earnings of between £390,000 and £394,999.

Other top earners included Justin Webb, Naga Munchetty, Fiona Bruce and Sophie Raworth.

The broadcaster continues to face criticism over several high-profile editorial decisions. Last year it came under fire for livestreaming a performance by punk duo Bob Vylan at the Glastonbury Festival after chants directed at the Israel Defense Forces were broadcast. It is also defending a $10 billion (£7.5 billion) lawsuit filed by President Trump over the Panorama programme.

BBC Chairman, Samir Shah, said the organisation recognised the seriousness of the editorial failures, citing the Panorama edit, the Gaza documentary, and broadcasting errors during the Glastonbury Festival and the Bafta Film Awards. He said the board had introduced reforms aimed at ensuring editorial mistakes are dealt with more swiftly, transparently and effectively in future.