BBC licence fee to be replaced with household tax?

The BBC TV licence fee could be scrapped and replaced by a compulsory "household tax" that would require richer families to pay more, the corporation's outgoing Director-General has revealed.

Lord Hall of Birkenhead, who steps down from his role on Friday after more than seven years, admitted progressive alternatives to the much-criticised TV licence were "interesting" and "should be looked at". He suggested the annual levy, currently standing at £157.50, could be collected as an additional charge on current household bills, such as council tax and broadband.

This could mean the BBC saving a substantial amount of time, money and effort tracking down those attempting to swerve the payment.

In its current form, the TV licence fee is guaranteed until at least 2027, but the Government has previously indicated a new funding system to fit with the new digital era could be implemented after this time.