Nearly two million people told the BBC they no longer required a licence fee last year, as the corporation predicted that more viewers will desert them this year.
A total of 1.96 million households said they did not watch the BBC or other live television in 2021-22, a rise of 270,000 on the previous year and equating to £42 million in lost revenue.
The figures were contained in TV Licensing’s annual report, which warned that licence fee income would decline as more people switched to streaming services or decided they could no longer afford the £159-per-year outlay.
“The BBC expects its licence fee income will fall, at least in the short-to-medium-term, because of cost of living increases since the start of 2022, and the continuing decline in licence sales arising from changes in how audiences view television content,” the report said.
There has also been a significant increase in the evasion rate, which reached 8.9 per cent in 2021-22.
The BBC blamed this on two factors: the suspension of home visits by TV Licensing enforcers due to Covid restrictions, and the inclusion of over-75s in the evasion figures following the scrapping of their free licences.
Around one in 10 over-75s has ignored the BBC’s letters telling them to pay for a licence or apply for a free one.
‘Strike the right balance’
As a result, the report said, “during the coming year we will deepen our efforts to reach customers in ways that suit them best”.
It said the relaxation of Covid rules meant there was now scope for the BBC “to undertake more visits to households”, but claimed that the corporation’s approach would “strike the right balance between enforcement and encouragement”.
That encouragement includes a new “customer value management approach”, which will involve sending letters to non-paying households emphasising how much enjoyment they can derive from watching live television programmes on the BBC and other channels, and the shows they can watch on iPlayer.
If the licence fee remains unpaid, the individual faces prosecution and a fine of up to £1,000.
BBC to broadcast radio shows
Despite the increase in evasion and those no longer requiring a licence, the total licence fee income rose by £53 million to £3.8 billion in 2021-22 thanks in large part to an increase in the cost of a licence from £157.50 to £159.
The BBC is to begin broadcasting its radio phone-in shows on television, imitating commercial rivals such as LBC.
Nicky Campbell’s Radio 5 Live programme is the first to be piloted. It will be shown on weekday mornings on BBC Two, and streamed on the BBC News channel.
The corporation said other programmes will follow as it invests in “visualising” radio shows. That approach has proved a hit for LBC, the commercial station which has poached several big BBC names including Andrew Marr and Eddie Mair.
GB News also features televised phone-ins, while TalkTV broadcasts output from TalkRadio.
