Select committee: Public Accounts Committee
Conclusion 11
56th Report - BBC Accounts and Trust Statement 2024–25
Published 21 Nov 2025
Addressed to HM Treasury
Public Accounts Committee BBC Accounts and Trust Statement 2024-25 All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
In 2024–25, the BBC spent £166 million on collection of the licence fee, (equivalent to 4.3% of licence fee income), up from £143 million (4.0%) in 2023–24. It issued 60.2% of licences electronically, and around 40% paper licences.19 The BBC told us that postal costs were a significant component of collection expense and that minimising reliance on mail and moving more contact online was a key part of reducing the cost of collection. It also highlighted rising postal prices of 14.4% in the year, which added further pressure. In parallel, the BBC said the cost of collection included investment in a new over-75s (pension credit) system, that automatically checks entitlement with DWP and issues licences, improving customer experience by reducing processing from up to two weeks to around two minutes, and as a consequence the BBC expected to save money.20
From: Public Accounts Committee, 56th Report - BBC Accounts and Trust Statement 2024–25 (HC 1230), 21 November 2025
Government response
Latest Treasury Minutes progress report to the Committee of Public Accounts on the Fifty-sixth Report of Session 2024-26
The government responded to the whole report on 4 June 2026 (deadline 21 January 2026).
Treasury minutes: Government response to the Committee of Public Accounts on the Fifty-sixth report from Session 2024-26
Published 19 January 2026.
Summary written by Accountability Index from the government's response. It is not the government's own words.The BBC's response agrees with some recommendations, partially agrees with others and disagrees with the recommendation to report on targets for reducing "no-licence needed" declarations and evasion.
- On licence fee collection, the BBC agrees with modernising collection and enforcement for online viewing, but says it is not "currently practical to set a firm timeline".
- It disagrees with reporting progress against targets for "no-licence needed" declarations and evasion, saying "an evasion target is not considered appropriate" and a target for NLNs would not be appropriate.
- On digital licences, the BBC agrees and "will consider the regulatory aspects and practicalities" of making an e-licence the default, with an update in the Licence Fee Trust Statement for 2025/26.
- On commercial returns, the BBC partially agrees, saying it "will ensure" BBC Commercial's overall returns including dividends are published annually in its Annual Report and Accounts, with a target date of 2026.