25 September 2026

Social Market Foundation published a report calling for the BBC Licence fee to be replaced by an ‘Home Internet Levy’ of £11 on top of existing broadband bills, among other recommendations to Government.

ISPA is not in favour of such a levy, which would increase prices for consumers and affect providers’ ability to finish the infrastructure rollout. The sector remains committed to working constructively with the Government so that everyone benefits as the country moves towards an increasingly digital future.

“Increasing everyone’s broadband bills by £11 a month to replace the TV licence fee during cost of living pressures is not the answer to how to fund the BBC.

Such a levy would also raise questions on whether broadband providers would be expected to oversee the collection and enforcement of the licence fee, which is not an appropriate role for them to have. 

Broadband real-term prices have fallen in recent years as investment in broadband has brought faster, more reliable networks.  The proposed internet levy risks undermining this and will lead to an average increase of 35% in broadband bills which would not be used to go back into broadband networks or services.

It is also a challenging investment climate for providers as they seek to finish the job of rolling out nationwide gigabit-capable broadband.  Investors need confidence that the UK sees digital connectivity and infrastructure as a priority, not as a new source of tax. 

The sector remains committed to working constructively with the Government so that everyone benefits as the country moves to an increasingly digital future.”