The BBC must change the way it funds itself to secure its future , the director-general warns today . In a speech to staff , Tony Hall will say he backs plans to overhaul the licence fee ‘ to reflect changing times ’ . Lord Hall reveals he is open to a new universal levy on every household in the country – even those that do not own a television set or only watch programmes online or on catch-up services . BBC director-general Tony Hall , who says he will back plans to overhaul the licence fee 'to reflect changing times ' This would lead to an estimated 500,000 extra households having to pay for a service they do not use or currently get free . The director-general ’ s speech at Broadcasting House in London comes just a week after a report by the MPs on the Commons Culture , Media and Sport Committee said the £145.50-a-year TV licence fee system was outdated and should be replaced . The debate has stepped up a gear as negotiations on renewing the BBC ’ s Royal Charter in 2016 get under way . Expressing the BBC ’ s view , Lord Hall is expected to say : ‘ We ’ ve always said that the licence fee should be updated to reflect changing times . ‘ I welcome the committee ’ s endorsement of our proposal to make people pay the licence fee even if they only watch catch-up television . ‘ The committee has suggested another route to modernising the licence fee – a universal household levy . Both proposals have the same goal in mind : adapting the licence fee for the internet age . Lord Hall made the speech to staff at BBC Broadcasting House , pictured , just a week after a report by the MPs on the Commons Culture , Media and Sport Committee said the £145.50-a-year TV licence fee system was outdated and should be replaced . ‘ I believe we need and we will need what the licence fee – in whatever form – makes happen more than ever. ’ A universal tax would remove the need for the BBC to pursue those who do not pay the licence fee – a costly system that leads to a loss of between £196million - £235million a year . But ministers say the earliest it could be introduced would be 2026 . A subscription system advocated by the select committee , is opposed by Lord Hall as ‘ poor value ’ . He will warn that it could fatally diminish the BBC ’ s ability to compete on digital platforms with other providers such as Netflix , Google and Apple .
BBC director-general Hall made a speech at Broadcasting House . Said he will back plans to overhaul licence fee 'to reflect changing times ' Will be aimed at those who do n't own a TV or only watch catch-up services . Estimated an extra 500,000 households will pay for a service they do n't use . Comes after licence fee was branded outdated in a report by MPs last week .