BBC Licence Fee Non-Payment (Decriminalisation for Over-75s) Bill

Justin Madders Excerpts

2nd reading
Friday 20th October 2023 Commons Chamber

[Sir John Whittingdale]

It has always been the case that the licence fee is required to watch live TV. It does not extend to the other things, however much some people might suggest it should. That has led to an issue that I will go on to talk about: the challenge to the existing model as people change the way they consume television.

It is worth noting that the licence fee is not just used to fund the BBC. It is also used for other strategic public service objectives, including the funding of the Welsh language broadcaster S4C. I spent yesterday in Cardiff, where I was able to visit S4C; I visited the set of “Pobol y Cwm”, for any Welsh speakers in the Chamber today. I can vouch that S4C does an important job in sustaining the Welsh language and is thoroughly deserving of public funding through the licence fee, which is why the Government agreed in the last licence fee settlement to a significant increase in that funding.

The licence fee represents a significant intervention in the broadcasting market, providing a predictable and steady source of revenue for the BBC. The Government are currently committed to maintaining the licence fee funding model for the duration of this 11-year charter period, which runs until 2027. But as I have already suggested—I will come on to this point at greater length—the BBC funding model is facing major challenges, and it is necessary to look at ways to ensure that it remains sustainable in the longer term.

The licence fee does not represent the only intervention by the Government in the broadcasting sector. There are a number of other ways in which we support a dynamic and successful broadcasting sector and, in particular, public service broadcasting. We have six public service broadcasters: the BBC, ITV, STV, Channel 4, S4C and Channel Five. Only two of those—the BBC and S4C—receive direct public funding from the licence fee. All six broadcasters benefit from regulatory advantages such as prominence and guaranteed access to spectrum. With these benefits come obligations with respect to the content that they show and how it is made.

The UK’s public broadcasting system was originally born of necessity when there was limited analogue capacity of spectrum, but more recently—over the past 50 years—the role has become clearer. The six broadcasters complement the free market, producing the type of content that would otherwise be under-served, such as local news that addresses communities across the country, current affairs programmes and original, distinctively British programming that shapes our culture and reflects our values. It is not limited to traditional broadcast television; BBC Bitesize, for example, provides an important resource for young people and schools across the UK. The UK’s public service broadcasters complement their commercial competitors by raising standards across the industry, investing in skills, boosting growth and taking creative risks.

Broadcasters, including the public service broadcasters, are facing a number of challenges due to changing technology. Just as the advent of cable and satellite revolutionised public service broadcasting, internet-delivered services are revolutionising broadcasting now, creating new distribution models with their own gatekeepers. It is telling, for example, that 74% of households with a TV set now choose to connect it to the internet. That has provided viewers with an enormous amount of choice in what they watch and how they watch it.

In particular, the trend away from linear viewing and towards on-demand viewing is continuing. According to Ofcom, in the first quarter of 2023, approximately two thirds of UK households were subscribing to a subscription-video-on-demand service. The weekly reach of broadcast TV fell from 83% in 2021 to 79% in 2022, which is the biggest ever annual drop. This ongoing shift away from traditional, linear, scheduled TV viewing to on-demand via the internet offers viewers an enormous extra range of choice, but it is also putting pressure on the traditional funding models and on public service broadcasters. One way in which the Government intend to address that is through the introduction of the media Bill, which I hope we will hear more about in the King’s Speech. The purpose of that Bill will be to ensure that the public service broadcasters remain visible at the top of the programme guides, whatever form of TV distribution viewers choose to use, because we believe it is important that the public service broadcasters are sustained.

I come to the specific issue my hon. Friend the Member for Christchurch raises in his Bill: TV licences for the over-75s. Both decriminalisation of the licence fee and the exemption for the over 75s have been debated at length many times in this Chamber. I understand that they remain controversial and that many people remain critical of the fact that the BBC now enforces the payment of the licence fee for over-75s who do not qualify as a result of receiving a means-tested benefit.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

The Minister will probably recall that I have tabled a number of written questions on enforcement action taken by the BBC, and it seems that no enforcement action has been taken against the over-75s. The Minister says in his responses that any enforcement action should be undertaken with the utmost sensitivity. I can show him letters that my constituents get from the BBC that do not show the utmost sensitivity. Another conversation needs to be had about how this has all been handled.

[Sir John Whittingdale]

The hon. Gentleman is right on both points. He is right that enforcement action has largely not been taken by the BBC against over-75s who have not acquired a television licence—certainly no prosecutions have yet followed. He is also right to cite our stricture to the BBC that it should approach this matter with sensitivity. Like him, “sensitivity” is not the first word I would choose to describe the general tone of communications about TV licence fee collection.

--- Later in debate ---

[Sir John Whittingdale]

I can assure my hon. Friend that those will be taken into account. He is right that that is a factor that increases the income of the BBC. However, it has to be balanced against other factors, about which I will say a little more, that result from a change in the way in which people access television, which is leading to a reduction in the number of people paying the licence fee.

The proposal of my hon. Friend the Member for Christchurch in his Bill would be to decriminalise TV licence evasion for the over-75s. It would be very difficult to make it a criminal offence not to pay the licence fee up to a certain age, after which it would no longer be a criminal offence. Our view is that the law needs to apply equally to offenders, regardless of their age. It is right that our justice system is fair and just to all people, regardless of their characteristics.

The more general issue of decriminalisation is one that we have considered on a number of occasions. In fact, when I was Secretary of State in 2015, I came into the job supporting decriminalisation, because I shared the views expressed by a number of my hon. Friends. We commissioned a review of the matter, conducted by Mr Perry, which came out firmly against decriminalisation. Subsequently, in February 2020, when I was a Minister in the Department for a second time, a further consultation received a large number of responses—over 150,000—the majority of which were against decriminalisation.

The reasons for that were several. The BBC argued strongly that it would lead to an increase in evasion, which it estimated would cost it in the order of £300 million. It was also pointed out that if it became a civil offence, and people were taken to court for failure to pay as a civil matter, that could lead to significantly higher fines and costs, if they were found guilty. It highlighted significant impacts in terms of the cost and implementation. The current system works relatively efficiently in the magistrates courts, but moving it over to be a civil matter would result in a considerable increase in costs.

For those reasons, the Government decided that we would keep decriminalisation under review, but we would not proceed to decriminalise at that time. It is more important that we address the whole issue around the future of the licence fee, which is becoming harder and harder to sustain.

[Justin Madders]

It seems to me that we are effectively in a situation where the BBC has decided to decriminalise for over-75s but has just not declared that that is the position. That certainly seems to be the case from its actions, at the very least. We are in a slightly bogus situation where the law says one thing and the BBC continues to send out letters indicating that it will enforce that, when it has no intention of doing so. Given the distress of people when they receive those letters, it is important for us to get clarity from the BBC about its position.

[Sir John Whittingdale]

If people fail to pay their licence fee, it is a matter for criminal prosecution, but as the BBC is responsible for the collection of the licence fee, it is a matter of choice as to whether or not it wishes to prosecute. In response to our request that it addresses the matter with sensitivity, the BBC has assured us that it has not, to date, sought to prosecute anyone over 75.

I want to say a little more about the challenge to the licence fee going forward. When it was reviewed in 2015, it was recognised that there were a number of drawbacks. In some ways, it is a flat-rate charge for which there is no means-tested assistance, and therefore it is highly regressive. At that time, it was concluded that there was no better system of funding the BBC and that it was the most appropriate. For that reason, it was agreed that the licence fee would continue for the remaining period of the current charter.

As the media landscape has changed in the way that I have described, that has had a consequence. Despite the point made by my hon. Friend the Member for Shipley (Philip Davies) about housebuilding, the number of TV licences held has declined by 1.9 million since 2017-18. That is because, probably for the first time, a large number of people are genuinely saying that they do not watch live television and that they are perfectly adequately entertained by watching streaming services, on demand and catch-up TV. Under the current rules for the licence fee, they are not required to have a licence.

On top of that decline of 1.9 million, estimated TV licence evasion has now risen to its highest level since 1995, standing at about 10.3%. If the trends taking place continue, that represents a significant challenge to the sustainability of the licence fee, and that comes on top of the concerns about the fairness of the model and, indeed, about whether it is right to continue to enforce it through a criminal sanction.

Already we have seen the House of Lords Communications and Digital Committee suggest that the drawbacks to the current licence fee model are becoming more salient. It called for a comprehensive review of the licence fee system. In response, the Government have established the BBC future funding review, with the purpose of examining the options for alternative means of funding the BBC after the end of the current settlement.