Plunge in licence fee income puts more pressure on BBC as top earners revealed

Half a million households cancelled their licence fee last year as the BBC struggled to connect with younger audiences drifting away to Netflix and YouTube.

- Jim Waterson

The stark extent of the BBC's challenges were set out in the corporation's annual report published yesterday, which showed the total number of British households paying the £169.50 licence fee fell to 23.9 million, suggesting a growing number of people felt able to go without BBC services.

The fall has hit the BBC's income at a time when its finances were already struggling owing to a decade of funding cuts and high inflation.

The BBC also revealed the large salaries paid to some of its biggest stars, with Gary Lineker once again topping the list on £1.35m a year. The Match of the Day host's contract is due to run out next year amid speculation over whether he will remain after a longrunning series of public clashes with the corporation that culminated in a staff mutiny last year.

Huw Edwards, who left the broadcaster earlier this year after a media scandal, was the BBC's third highest paid star on £475,000-up £40,000 on the previous year - but spent most of the year signed off on medical leave.

The football commentator Alan Shearer's salary fell by £65,000 to £380,000, while the Today presenter Nick Robinson earned £345,000 - an increase of £70,000.