The BBC is facing a £1bn funding crisis as licence fee cancellations and evasion continue to surge despite rising enforcement efforts.
The BBC is losing money as more people are not paying their TV license fees (Image: Getty)
The BBC is facing one of the most severe funding crises in its history, following new figures that revealed licence fee cancellations and evasion cost the broadcaster over £1 billion last year, despite a major escalation in enforcement efforts.
The corporation’s latest annual report shows that enforcement teams made approximately two million home visits in 2024–25, a 50% increase from the previous year. However, the results suggest diminishing returns, as the BBC noted that people are increasingly reluctant to answer the door, thereby limiting its ability to pursue unpaid fees.
People are reluctant to open the door for enforcement teams (Image: Getty)
One in eight active BBC users is now believed to be avoiding payment, depriving the broadcaster of around £550 million.
Meanwhile, total licence numbers have continued to fall, dropping by roughly 300,000 between March 2024 and March 2025.
A further 3.6 million households now claim they no longer require a TV licence, according to figures highlighted by the Commons Public Accounts Committee.
That shift represents a potential additional loss of £617 million, pushing the total possible funding gap to £1.1 billion.
The committee criticised the broadcaster for failing to modernise its approach, saying the BBC is “not doing enough” to enforce payments or adapt to the realities of digital viewing.
It warned that rising evasion “has not been successfully tackled” and that the burden is increasingly falling on households that still pay.
Much of the BBC’s challenge stems from the rapid shift toward online viewing, which has weakened the link between TV sets and the licence fee.
While iPlayer legally requires a licence, accounts only need an email address, making it difficult to verify whether someone is paying. The committee stated that this disconnect highlights how the current system is no longer suitable for a digital-first audience.
BBC leadership has repeatedly argued that the licence fee remains the most efficient way to fund a universal public broadcaster, but growing non-compliance, particularly among younger audiences, is threatening that model.
The broadcaster is already under pressure to invest more in digital programming, widen its regional output and rebuild trust with audiences who feel underserved.
Sir Geoffrey Clifton-Brown, chair of the Public Accounts Committee, warned that unless the BBC modernises its approach and aligns funding with online consumption, “the ground will continue to shift beneath its feet.”
