THE BBC has declined to reveal the number of people who are avoiding paying the licence fee because they use online catch-up services instead, amid calls for a review of how the broadcaster is funded.

More than a million households do not pay the £145.50 annual fee, but the BBC said it could not disclose how many choose not to because they watch shows on BBC iPlayer instead as this information would be "of use to those seeking to evade paying the licence fee".

People do not need a licence fee to play back programmes on services such as the iPlayer, ITV Player, or 4 On Demand, as long as they don't stream live television. It has led to more households responding to TV Licensing letters by making a "no licence fee needed claim".

John Whittingdale, chairman of the Culture, Media and Sport Committee said there should be alternatives to the licence fee. He said: "In an era when people are more and more not watching broadcast linear television, it becomes harder and harder to justify [the fee]."

Matthew Sinclair, chief executive of the Taxpayers' Alliance said the public needed a proper debate about the licence fee.