Source · Select Committees · Public Accounts Committee
Recommendation 12
12
Deferred
Many households still receive paper licences; BBC lacks specific target for electronic issuance.
Conclusion
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 many households did not provide email addresses and were not obliged to do so.21 We asked the BBC to explain its “very analogue” reliance on the letters and enforcement visits and why digital viewing information was not used more directly. The BBC pointed to gradual progress in digital engagement with its customers, noting that the share of customers with an e-licence rose by 3 percentage points to 60% in the last year.22 However, the BBC also told us there was no specific target to increase electronic issuance but accepted the “fair challenge” to go further.23
Government Response Summary
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.
Government Response
Deferred
HM Government
Deferred
2.2 As noted by the NAO in section 1.10 of their report, ‘The BBC is taking steps to minimise collection costs, for example by issuing 60.2% of licences electronically as of March 2025 – an increase from 57.2% in 2023-24.’ 2.3 The BBC currently sends Licences by email where the customer has opted in to an e- licence and has been increasing this number through communications to customers. 2.4 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. 2.5 The sending of paper licences is a small proportion of overall mailings. If all were removed this would lead to a saving of £200k p.a. 2.6 Bankers’ Automated Clearing Services (BACS) regulations require letters to be sent to Direct Debit customers who have not signed up for digital communications when their payment plan changes. There are nearly 5million customers who are in this category who have not agreed to moving to digital communications. 2.7 The majority of letters sent are to unlicensed households and these mailings generate more in revenue than they cost to send, so more money can be spent on programmes and services. All mailings are managed in order to be sent at the lowest possible Royal Mail tariff. 2.8 Physical letters are required to correspond with unlicensed households where no contact details are held.