The decision provides clarity for millions as questions remain over the future of BBC funding
Millions of Netflix and Amazon Prime subscribers have been given clarity over whether they could be forced to help fund the BBC through a new streaming charge.
The Government has ruled out introducing a levy on streaming services, ending speculation that households could face additional costs on top of their existing subscriptions.
Culture Secretary Lisa Nandy confirmed during Culture Questions in the House of Commons on Thursday that ministers will not require platforms such as Netflix, Amazon Prime and Disney Plus to contribute towards BBC funding.
The announcement comes after months of debate over the future of the BBC's finances and how the broadcaster could be funded in the years ahead.
The BBC has previously acknowledged that its current funding model is "not sustainable and needs reform", prompting discussion about possible alternatives to the licence fee.
One proposal that attracted attention was the possibility of introducing a levy on streaming platforms, potentially increasing costs for millions of households that subscribe to services such as Netflix and Amazon Prime.
However, Ms Nandy made clear that the Government has ruled out that option.
Responding to questions from Conservative MP Bradley Thomas, she said: "We have been very careful not to get drawn into speculation about the future funding arrangements for the BBC, except to say that we are, we have ruled out a levy on streamers, and we have also ruled out direct taxation going to fund the BBC, because of the need for the BBC to retain its independence."
The comments also provide reassurance for people who only watch content through streaming services.
While the annual TV Licence fee increased to £180 in April and is due to rise again next year in line with CPI inflation, those who only use streaming platforms will not automatically face licence fee charges under any future funding arrangement currently being considered by the Government.
Ms Nandy's intervention means two potential funding options have now been taken off the table: a levy on streaming services and direct taxpayer funding of the BBC.
Direct government taxation to support the broadcaster has been rejected alongside the streaming levy, with ministers citing the importance of maintaining the BBC's editorial independence from state funding.
A TV Licence is required for watching or recording live broadcasts on any channel, accessing BBC iPlayer content, and viewing live events on streaming platforms.
Those aged 75 and over who receive Pension Credit, either themselves or through a partner at the same address, qualify for a free licence covering their entire household.
Residents of care homes, supported housing or sheltered accommodation may be eligible for reduced fees, while those registered as severely sight-impaired can claim a 50 percent discount.
Crucially, viewers who exclusively watch on-demand content through Netflix, Disney Plus, Amazon Prime Video, YouTube or DVDs do not require a licence, potentially saving £180 annually.