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Should Netflix users have to pay the BBC licence fee? (Image: GETTY)

Millions of Netflix users in the UK could be faced with a huge dilemma after reports claimed Sir Keir Starmer is considering making streaming services customers pay the BBC licence fee.

The move would form part of the Labour Government's plan to change the way the BBC is funded, Bloomberg reports. At present, the licence fee stands at £169.50 a year, but will rise to £174.50 in April 2025.

Insiders familiar with the matter claimed the Treasury, and the Department for Culture, Media and Sport (DCMS), are mulling over several options

Other funding alternatives could reportedly include allowing the BBC to show adverts, making BBC radio listeners pay a fee, and taxing streaming services.

A tier system so lower-income households pay less than their higher-income counterparts could also be created, while iPlayer viewers could be forced to pay a subscription fee.

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Alternatively, one source told Bloomberg the license fee could also be left unchanged with the addition of a few minor ajustments and better enforcements.

The DCMS has refused to directly address the "speculation"' but told Express.co.uk: "We will provide more details about charter review plans in due course."

Culture Secretary Lisa Nandy said she'd "already started initial discussions with the BBC leadership about the Charter Review", which will "future-proof our national broadcaster until well into the latter half of this century".

She also confirmed that the Government is not considering funding the BBC through general taxation.

The licence fee stands at £169.50 a year, but will rise to £174.50 in April 2025 (Image: GETTY)

The BBC faces competition from advertising-funded TV channels, online content, and streaming platforms like YouTube and Netflix.

Currently, funds generated from by the TV licence fee support the creation of BBC programmes and services, and those who watch any live TV or stream BBC iPlayer must pay the annual cost.

In 2023, the broadcaster's total income from the licence fee was £3.74billion. This made up around 65% of the BBC's total income.

It says it earns the rest of its income from commercial and other activities, including grants, royalties and rental income.