What is the £11 Monthly Broadband Government Fee?
BBC FUNDING PROPOSAL • REPLACING THE TV LICENCE • WHO PAYS • WHAT HAPPENS NEXT
No new fee has been passed yet — the £11 monthly broadband fee is currently just a proposal to replace the BBC TV licence.
Recent headlines have sparked concern about a new mandatory “Home Internet Levy” being added to UK broadband bills. This is a recommendation put forward to the Government by the Social Market Foundation (SMF) think-tank as part of the ongoing BBC Charter Review.
It aims to replace the current £180 annual TV licence with an £11-a-month charge on internet bills. As of September 2026, no official decision has been made, and the current TV licence remains in effect.
Why are people talking about an £11 broadband fee?
The conversation stems from a significant funding squeeze at the BBC. Fewer people are watching traditional broadcast television, and evasion of the current TV licence fee has jumped from under 7% in 2019 to over 12% last year.
Because the BBC’s current funding model is under threat, the SMF submitted a report to Culture Secretary Lisa Nandy detailing alternative ways to fund the broadcaster before its royal charter expires in 2027.
Licence fee evasion
With more viewers shifting to streaming platforms like Netflix and Disney+, fewer households are paying the traditional £180 annual television licence.
The “Home Internet Levy”
The think-tank suggests abolishing the TV licence and forcing every household with a fixed broadband connection to pay £11 a month to fund the BBC.
Important: This is a highly controversial idea because it would force people who do not consume any BBC television or radio content to pay the fee simply because they have an internet connection at home.
How would the “Home Internet Levy” actually work?
Under the SMF proposal, the current system of paying TV Licensing directly would be scrapped.
Instead, an £11 monthly surcharge would be automatically added to your monthly broadband bill by your Internet Service Provider (ISP) — such as BT, Sky, Virgin Media, or TalkTalk. The ISP would collect the money alongside your regular internet subscription and pass it on.
At £132 a year, it would technically be cheaper than the current £180 licence fee, but the net would be cast much wider, capturing almost every home in the UK.
Concessions for vulnerable households: The SMF has acknowledged the impact this would have on low-income earners. The proposal suggests that discounts or exemptions should be applied for those receiving Universal Credit or Pension Credit.
Are there any other options being considered?
The £11 broadband fee is just one of several options on the table. The Government is looking at multiple ways to modernise the BBC’s funding.
Other ideas floated in the SMF report include a “News and Culture Levy” (keeping the current TV licence but adding a smaller £2.30 monthly surcharge to internet bills) or a flat £12-a-month “Household Levy” applied to all homes like council tax.
| Proposed Model | Estimated Cost | How it works |
|---|---|---|
| Home Internet Levy | £11 / month | Replaces TV licence. Charged to all fixed-line broadband customers. |
| News & Culture Levy | £2.30 / month | Keeps the current TV licence, but adds a smaller surcharge to internet bills. |
| Household Levy | £12 / month | Replaces TV licence. A blanket charge applied to all UK households regardless of tech. |
BBC Funding Review Timeline
The traditional TV licence model was still functioning with relatively low evasion rates.
As streaming dominates, the BBC faces a projected £800m annual funding shortfall.
The think-tank formally recommends the £11 monthly internet charge to the Government.
The current BBC Royal Charter expires in 2027. Any new funding model — if approved — would likely take effect after this date.
What should you do now?
The £11 monthly broadband fee is currently just an idea, not a law. The Social Market Foundation has proposed this “Home Internet Levy” to replace the current BBC TV licence, aiming to solve the broadcaster’s funding crisis. While it would make funding the BBC mandatory for anyone with an internet connection, the Government has not approved the plan. For now, the existing £180 TV licence rules remain exactly the same.
BBC Broadband Levy FAQs
Is the £11 monthly broadband fee mandatory?
It is currently only a proposal. However, if the Government adopts the Social Market Foundation’s recommendation, the £11 “Home Internet Levy” would become mandatory for all UK households with a broadband connection, regardless of whether they watch BBC services.
Has the TV licence been scrapped?
No. The £180 annual TV licence is still legally required if you watch or record live television on any channel or use BBC iPlayer. The broadband fee is simply a proposed replacement being considered for after 2027.
Will pensioners have to pay the new broadband fee?
The think-tank behind the proposal has suggested that concessions and discounts should be put in place for vulnerable households, including those receiving Pension Credit and Universal Credit, to ease the financial burden.
Sources
- Social Market Foundation (SMF) Report, September 2026 — Proposal detailing the “Home Internet Levy” and alternative funding models for the BBC.
- Department for Culture, Media and Sport (DCMS) — Ongoing statements regarding the Government Charter Review and the future of BBC funding post-2027.
- TV Licensing Official Guidelines — Current rules confirming the £180 annual fee remains legally required for live TV and iPlayer.