Recommendations & Conclusions
5 items
2
Conclusion
56th Report - BBC Accounts and Trust St…
Deferred
The BBC has not adopted opportunities to digitise the licence fee, resulting in missed opportunities for cost efficiency and more customer engagement. The cost of collecting the licence fee is rising, partly because of the BBC’s reliance on postal correspondence and its increasing cost. Around 40% of households still receive …
Government response. The BBC partially agreed, explaining its existing processes for Capita contract management and rejecting the use of incentives for income or evasion reduction as inappropriate. It did not commit to setting a timeframe for digital licences or outlining plans to …
HM Treasury
7
Conclusion
56th Report - BBC Accounts and Trust St…
Deferred
Potential lost income for the BBC in 2024–25 is estimated to exceed £1.1 billion. Licence fee evasion increased to 12.52%, up from 12.04% in 2023–24, representing up to £550 million in lost revenue. The BBC did not set a target for evasion during this period. In addition, 3.6 million households …
Government response. The government responded by discussing measures related to 'Britain’s illegal meat crisis,' biosecurity at the border, and animal vaccine development, entirely unrelated to the BBC or licence fee evasion.
HM Treasury
8
Conclusion
56th Report - BBC Accounts and Trust St…
Deferred
The BBC increased enforcement of the licence fee system by carrying out nearly 2 million visits to unlicensed households in 2024–25, about 50% more than in 2023–24, driven by a rise in visiting officers (from 172 to 229) and visits per officer (from 7,660 to 8,670). However, this increase did …
Government response. The government responded by outlining strategies and actions related to animal vaccine availability and development, entirely unrelated to BBC licence fee enforcement.
HM Treasury
9
Conclusion
56th Report - BBC Accounts and Trust St…
Deferred
We queried why digital audience engagement through the accounts necessary to use iPlayer cannot support more digital licence fee enforcement activities. The BBC told us that its household-address based licensing system does not match individual based BBC account data, so it cannot directly tie digital use to a licence holder.13 …
Government response. The government responded by outlining work related to a Sanitary and Phytosanitary (SPS) agreement with the EU and strengthening resilience to animal disease, entirely unrelated to BBC iPlayer or licence fee enforcement.
HM Treasury
12
Conclusion
56th Report - BBC Accounts and Trust St…
Deferred
We asked the BBC why a large minority of households still received a paper licence and what the BBC was doing to accelerate the shift online. The BBC explained that physical licences were issued by default unless customers opted into an e-licence, that the BBC tried to promote, and that …
Government response. The BBC will consider the regulatory aspects and practicalities of making an e-licence the default position and will give an update on this in the Licence Fee Trust Statement for 2025/26.
HM Treasury