A Labour plot to impose the licence fee on households who only watch Netflix, Amazon Prime, Disney+ and Apple TV would be 'outrageous', it was claimed today.
Critics say it would be a 'desperate' move by Keir Starmer's Government to make Britons pay the £180-a-year levy to fund the BBC, even if they only watch on-demand TV via a rival streamer.
John O'Connell, chief executive of the TaxPayers' Alliance told the Daily Mail: 'Forcing streaming service subscribers to pay the licence fee would be an outrageous expansion of an already deeply unpopular tax'.
You do not currently need a TV licence to binge watch shows such as Stranger Things on services like Netflix, The Boys on Amazon Prime or Slow Horses on Apple TV.
It is only if homes stream live TV such as Champions League football or boxing via a streaming subscription they are required to pay the licence fee, which went up to £180 in April.
An expansion of the licence fee to cover subscribers to services such as Netflix is the preferred option for Labour, industry sources involved in the talks over its future from December 2027 say.
The BBC has seen its income fall by a quarter in ten years and says it must make £500million of savings including cutting 2,000 jobs in the next two years.
'It's pretty desperate to argue that everyone should be made to pay for the BBC whether they watch it or not', a streaming source with knowledge of negotiations said.
'The BBC needs to think more radically and creatively about how to generate income in ways that don't undermine universal access'.
Currently people do not need a TV licence to watch 'on-demand' shows such as Stranger Things on services like Netflix
Amazon Prime hits such as The Boys would also require a £180-a-year licence fee payment, despite not being live TV
The Government is said to be wary of funding the BBC with advertising or a new subscription model because it would hurt ITV and Channel 4.
Instead, a blanket approach, where the licence fee is expanded to cover all streaming platforms could be imposed when the current BBC charter ends in December 2027, according to a report in The Times.
An industry source has said that ministers favour this 'expansive approach' to the licence fee over an advertising model.
John O'Connell from the TaxPayers' Alliance said: 'In an age of endless viewing choice, taxpayers should not be compelled to fund the BBC simply because they own a screen or use a streaming service.
'Rather than dragging more people into the licence fee net, ministers should finally look at a fairer and more modern funding model and abolish the licence fee.'
Culture secretary Lisa Nandy has previously said she would worry that a move from licence fee to a BBC subscription would hurt the Beeb's ability to 'unite the nation'.
She said last year: 'If you believe, as I do, that one of the greatest strengths of the BBC is its ability to unite the nation that has found multiple ways to divide itself, then I think you’ve got to be cautious about the use of subscriptions and paywalls.'
The BBC declined to comment on The Times report, saying it was for the Department for Culture, Media and Sport.
But in March a BBC paper on its future described how 80 per cent of the UK pay the licence fee - even though the corporation believes 94 per cent of the population use BBC services on TV, radio or online each month.
The document warned: 'Households that watch or record live TV – on the BBC or elsewhere – or use BBC iPlayer to watch BBC content are required to hold a licence.
'The number of people consuming live TV has fallen, as has the volume of live TV consumed. This is because audience behaviour has changed at a pace and scale not anticipated in the last Charter Review.
'The general approach others [abroad] have taken has been to restore universality of payment while taking steps to enhance fairness through progressive pricing or concessions to help those on lower incomes'.
Streamers are said to be very unhappy about the idea all their customers would be charged the licence fee, on top of their subscription fee.
Culture secretary Lisa Nandy has previously said she would worry that a move from licence fee to a BBC subscription would hurt the Beeb's ability to 'unite the nation'
The Department for Digital, Culture, Media and Sport said in a statement: 'The government does not comment on speculation.
'We are reviewing responses to the BBC Charter Review consultation and will set out our decisions in a white paper to be published later this year.'
The Government is looking at how to replace or change the current licence fee funding model when the current BBC charter ends in December 2027.
If people watch or stream live TV they are required to buy a licence.
But if they stream on demand shows, they don't, for now.
Among the alternative options being considered by ministers are letting the BBC use advertising, hitting streaming services with a particular tax or making those who tune in to BBC radio pay a charge.
The government could still also decide to alter or even keep the current TV Licence system.
Funding through taxation or subscription remain options.
Ministers will also consider calls for a system which sees wealthier households pay more than poorer ones.