The television licence fee could be added to monthly broadband bills, the BBC has suggested, as a "more efficient" means of collection.

The Government has opened a consultation into decriminalising licence fee evasion, proposing alternative systems including the issuing of fixed penalty notices for non-payment instead of a court appearance.

In its written submission, the BBC said the current system remains "fair, effective and good value for money" but "we recognise that [it] could be improved". Making the licence fee a monthly or quarterly surcharge on household bills would make it more difficult for households to evade payment.

The corporation said: "In some countries, the TV licence, or equivalent, is linked directly to an existing common household bill. For example, it is collected through electricity bills in Italy and the equivalent of council tax bills in France. Another option to consider as the UK progresses towards universal access could be broadband bills.

"This would be a significant change for the UK and we are not, at this stage, advocating it. It does, however, raise an interesting question as to whether the current system could be made much simpler, more efficient and more automated. We are open to exploring this further."

The consultation closes on Wednesday, and the BBC is strongly opposed to the idea of punishing non-payment with a civil fine, saying higher evasion rates – plus the cost of transitioning to a new system and enforcing it – would cost the corporation £1 billion over the remainder of the Charter period from 2022-27.

It has commissioned independent research which predicts that evasion rates will rise from the current level of 6.6 per cent to 10 per cent if the threat of a court appearance or prison is lifted.

"Evasion would rise as people would think the failure to buy a licence less serious," the BBC said. It argued that a civil system would be worse, entailing the use of bailiffs and resulting in county court judgments that can affect credit ratings and take six years to expire.

Fixed penalty notices would not take into account someone’s circumstances, the BBC said, meaning the system will be less fair.

According to the corporation, its TV Licensing arm exists to "support and encourage" payment. Under a different system, it would become "more enforcement-driven, which could have serious implications for the BBC's relationship with the public".

The submission concluded: "A civil system is not a viable alternative for the TV licence, and would mean a worse BBC for everyone."

Earlier this month, the BBC postponed plans to charge over-75s for the licence fee, saying the elderly do not need the additional worry as they deal with the Covid-19 crisis. However, the corporation believes that all of those who are eligible to pay will do so.

Lord Hall of Birkenhead recently told MPs that he could not rule out the possibility that pensioners in their 80s and 90s could find themselves hauled before a court for non-payment.

But the submission to the Government says: "It is extremely unlikely that anyone in this group will face enforcement action, not least because between 1992 and 1999, the period before the free concession was introduced in 2000, no one of that age was prosecuted.

"The over-75s are the most likely age group to be law-abiding and consequently the least likely to face any enforcement action."