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The Commons Culture, Media and Sport Committee has recommended radical reforms of the way the BBC is funded and its size and scope reined in.
A broadcasting levy on all households should replace the licence fee, with additional “subscription” payments a possibility, according to the influential committee of MPs.
In the short-term there is currently no better alternative to the licence fee but as a minimum the licence fee must be amended to cover catch-up television as soon as possible”.
A loophole currently means people who only watch programmes through catch-up and on-demand services like the iPlayer do not have to pay the £145.50 licence fee.