What Is the Proposed Broadband Levy?
A broadband levy of £11 a month, added to your home internet bill, has been put forward as a replacement for the TV licence. The idea comes from the Social Market Foundation, a cross-party think tank, and was first reported by the i newspaper on 22 September 2026.
The important thing to know straight away: this is a proposal, not a decision. The government has not said it will introduce a broadband levy, and your bills are not changing because of this story. It is one idea being discussed while the government reviews how the BBC should be funded after 2027.
How Would a Broadband Levy Work?
Under the proposal, the charge would be collected through broadband bills rather than a separate TV licence. Instead of paying TV Licensing directly, you would pay the levy as part of what you already pay your broadband provider each month.
Here’s how the numbers compare (checked September 2026):
| Option | Monthly cost | Yearly cost |
|---|---|---|
| Current TV licence (colour) | £15.00 (if spread monthly) | £180 |
| Proposed broadband levy | £11.00 | £132 |
| Difference | £4.00 less | £48 less |
On paper that looks cheaper for a household that already pays the licence fee. The catch is that a broadband levy would apply to almost every connected home, including people who don’t watch live TV or use BBC iPlayer and so don’t currently need a licence.
Why Is the Broadband Levy Being Discussed Now?
The BBC’s current Royal Charter runs until 31 December 2027. The government launched its review of the charter in December 2025, and the public consultation closed on 10 March 2026, according to the House of Commons Library. A white paper setting out the government’s decisions is expected later in 2026, with the new charter due to start on 1 January 2028.
The licence fee has faced growing pressure as more of us watch on demand and fewer homes rely on live broadcast TV. A charge on broadband bills has been suggested before, including by the BBC itself in 2020, but it has never been adopted.
What Could a Broadband Levy Mean for Your Bills?
If a broadband levy ever went ahead, a few things would be worth watching:
- Who pays. Households without a TV licence today could start paying for the first time.
- Help for lower income homes. The proposal mentions concessions for vulnerable households, but no detail has been published on how these would work.
- How it shows on your bill. It’s not yet clear whether providers would show it as a separate line or fold it into the headline price, which could make deals harder to compare.
- Timing. Any change would be tied to the new BBC charter, so nothing is expected before 2028 at the earliest.
Key takeaways
- The Social Market Foundation has proposed an £11 a month broadband levy to replace the £180 TV licence.
- It is a think tank proposal, not government policy. Nothing has been decided.
- The levy would cost £132 a year, £48 less than the current licence fee, but would apply to more homes.
- The BBC charter runs until the end of 2027, so any change would not arrive before 2028.
Common Questions About the Broadband Levy
- Is my broadband bill going up because of this?
- No. The broadband levy is only a proposal. Nothing has been agreed and there is no change to your bill today.
- Do I still need to pay my TV licence?
- Yes. The rules have not changed. If you watch live TV on any channel or use BBC iPlayer, you still need a TV licence.
- Who came up with the broadband levy idea?
- The latest version comes from the Social Market Foundation, a think tank. It has been put forward as part of the wider debate around the government’s BBC Charter review.
- When would a broadband levy start?
- There’s no start date because it hasn’t been approved. The current BBC charter runs until 31 December 2027, so any new funding model would not begin before 2028.
- Would I pay the levy if I don’t watch the BBC?
- Under the proposal as reported, the charge would be added to broadband bills generally, so it would likely apply whether or not you watch BBC content. Full details have not been published.
Whatever happens with the broadband levy, the easiest way to protect your bills is to make sure you’re not overpaying for broadband right now. If you’re out of contract or haven’t checked in a while, it’s worth seeing what else is available. Households on certain benefits may also qualify for a cheaper broadband social tariff.
