New system: Culture Secretary John Whittingdale (pictured) has suggested the levy could be paid on the same bill as council tax as part of a major reform of the way the public funds the BBC

The TV licence fee could be linked to the value of a person’s house under plans being considered by ministers.

Culture Secretary John Whittingdale suggested the levy could be paid on the same bill as council tax as part of a major reform of the way the public funds the BBC.

At the moment, everyone pays the same amount for their TV licence – £145.50 a year, but he said a degree of ‘progressivity’ could be introduced – meaning the rich would be expected to contribute more than the poor.

Officials said one way this could be achieved would be by linking the amount someone pays to the band of council tax they pay – but stressed that no decisions had been made.

Council tax is determined by the value of a person’s home, with people in a Band F home paying far more towards their local authority than someone in a Band C house.

The BBC came out in support of a household levy earlier this year, but Mr Whittingdale told the Commons’ culture select committee that no decision had been made ahead of legislation expected next year.

He said such a system could help tackle the issue of non-payment, as well as introducing a progressive element absent from the flat-rate licence fee.

Licence fee evasion is a criminal offence, but the Government is considering decriminalisation. The BBC fears this would lead to fewer people paying.

A household levy would help assuage BBC concerns about non-payment, Mr Whittingdale said.

‘There are a number of different options – the simplest is instead of your having to pay it separately through the TV licensing authority, you could pay it as same time as another bill like the council tax bill, which would make it easier and would also address part of the concern about evasion.

‘That is a possibility but we have not reached any decision about these things. The suggestion that the method of collection is linked to the issue of whether or not we decide to decriminalise, I would not dispute.’

He said a household levy scheme, linked to council tax, could also be more progressive.

Problem solving: He said such a system could help tackle the issue of non-payment, as well as introducing a progressive element absent from the flat-rate licence fee (file photo)

‘It wouldn’t be less regressive if you decided to retain a flat-rate single charge for every household, which is what the TV licence fee is.

‘If you linked it to council tax you could adopt the same sort of progressivity which exists within in the council tax system – that is one option. We haven’t reached a decision about any of these things.’

Last night the Department for Culture, Media and Sport said Mr Whittingdale had been talking ‘purely theoretically’. ‘He gave the example of a link to council tax, which is what a progressive funding model could look like,’ a spokesman said.