Plans to freeze the BBC TV licence and potentially scrap it all together in years to come are among things being considered by government officials as the fee continues to spark huge debate.

A universal household levy could offer a viable alternative to the BBC licence fee, a new report has suggested.

The Lords Communications and Digital Committee said the model, in which each household would be required to pay a flat fee regardless of consumption, could provide the broadcaster with “predictable and sustainable levels of income”.

In a report into the future funding of the BBC, the committee said it would need to be means-tested to make it fairer than the current model, with linking the fee to council tax a way of achieving this.

The latest development has led to debate online with many arguing they don’t use enough of the services offered by the BBC to warrant paying an annual fee.

One social media user wrote: "If the BBC is complaining about funding, it should look at its dire Christmas programming.”

Another added: “I'll take Netflix thanks as I choose it. I don't watch BBC programming so won't have a TV licence but because of that I can't watch live programming from non BBC providers which is ridiculous. Happy to have public service broadcasting but the bloated BBC can go.”

“The TV licence should not exist,” added another.

Although others were quick to defend the TV licence arguing the range of content on offer makes it great value for money.

One viewer argued: “Remember during the lockdowns when the BBC offered the biggest educational programme in its history? It ensured that even children who couldn’t access the internet could view curriculum-based programmes. It wasn’t commercially viable, it was extraordinarily valuable.”

Another added: “Mixed feelings but one thing that’s crystal clear for me is that what we get for that licence fee is staggeringly good value.”

The latest TV licence discussion has brought up great debate over whether it is time the BBC found alternative ways of funding its output.

In the quiz below you can work out exactly how much value you are getting for the annual licence fee.

Is your TV licence fee value for money? Find out here

The annual payment, which normally changes on April 1 each year, is expected to be kept at the current rate of £159 until April 2024, with additional ways of funding being considered by Nadine Dorries.

The culture secretary said the next announcement concerning the BBC’s licence fee “will be the last” as a new funding model is being considered for when the latest deal expires in 2027.

She wrote on Twitter: “This licence fee announcement will be the last.

“The days of the elderly being threatened with prison sentences and bailiffs knocking on doors are over.

“Time now to discuss and debate new ways of funding, supporting and selling great British content.”

How much is the BBC licence fee?

The annual TV Licence fee is set by the government which announced in 2016 that it would rise in line with inflation for five years from April 1 2017.

In February last year, is was announced the cost of the annual TV Licence fee would increase from £157.50 to £159 from April 1 2021.

The cost of an annual black and white licence rose from £53.00 to £53.50.