The BBC has sent out millions of letters warning households about potential £1,000 fines for not having a TV licence.

There has been a nearly 13 per cent increase from the previous year’s 36 million letters.

The corporation sent 41 million letters to British households between 2023 and 2024, urging them to pay the licence fee, the Telegraph reported.

The enforcement effort comes as the national broadcaster faces serious financial struggles in keeping its traditional funding system.

The letters typically warn recipients that watching live television without a proper licence could result in substantial penalties of up to £1,000.

The increase in letters can show the increasing pressure on the BBC’s main source of income as it tries to keep its £169-a-year licence fee.

The corporation sent 41 million letters to British households between 2023 and 2024

PA/GETTY

The BBC’s latest financial results reveal an £80 million drop in licence fee revenues, highlighting the growing challenges to its traditional funding model.

The number of households paying the levy for live television and BBC iPlayer access has fallen by half a million to 23.9 million in the year to April 2024. This decline represents a significant shift from the previous year’s 24.4 million paying households.

Despite these challenges, the licence fee still generated more than £3.6bn in revenue last year, according to the BBC’s annual report.

However, this figure represents a historic low for the corporation, with the licence fee generating 30 per cent more income in real terms between 2010 and 2011 than it does today.

Joanna Marchong, from pressure group – the Taxpayers’ Alliance – said: “Taxpayers are sick of being asked to cough up for the archaic TV tax.

“As their revenues plummet and more and more tune out, they’re showing their desperation by sending out this many letters and even suggesting forcing Netflix users to pay the licence fee.”

She added: “If the BBC wants people to stop changing the channel they need to begin to modernise their funding model.”

The comments come amid discussions between Government and BBC executives about potentially requiring Netflix customers to pay a special levy to help address the corporation’s funding shortfall.

Former Tory ministers have issued stark warnings about the sustainability of the BBC’s licence fee system.

Sir John Hayes, a former security minister, said: “The BBC finds itself at a critical juncture. Perhaps, it is facing an ‘adapt or die’ moment.”

Sir John Whittingdale, a former culture secretary, added: “The broadcasting landscape has changed dramatically since the last BBC Charter Review with more and more people choosing to subscribe to streaming services.”

Young viewers in particular are turning away from the BBC, with weekly reach among 16-24 year-olds dropping from 82 per cent in 2017 to 54 per cent in 2022.

BBC One’s dominance is also waning, with its weekly reach falling to 58 per cent, 12 percentage points lower than in 2017.

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A ComRes poll found 60 per cent of people felt the licence fee funding model was unsustainable.

A BBC spokesman responded to the challenges, saying: “We want everyone to get value from the BBC, which is why we’re focused on delivering what audiences want from us – trusted news, the best homegrown storytelling and the moments that bring us together.”

The corporation announced plans to launch its “biggest ever public engagement exercise” to help shape its future direction.

“The public cares about the BBC and this year, we will launch our biggest ever public engagement exercise so audiences can help drive and shape what they want from a universal and independent BBC in the future,” the spokesman said.

The BBC added that it looks forward to engaging with Government on the next Charter and securing its long-term future.

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