OFCOM's statement of principles for determining fees payable under section 84

Consultation: Statement of Charging Principles

Online safety fees¶

Consultation Published: 21 November 2025 Closing date for responses: 9 January 2025 For more information on this publication, please visit ofcom.org.uk.

Contents¶

Section¶

1. Overview ............................................................................................................................. 3

2. Introduction ........................................................................................................................ 4

3. Approach to the SoCP ........................................................................................................ 7

Section 1 Overview¶

Background¶

1.1 The Online Safety Act 2023 (the Act) brought online safety into our regulatory remit. We are required by the Act to recover our costs of online safety regulation from providers of regulated services whose qualifying worldwide revenue (QWR) is greater than or equal to a threshold through a fee.1

1.2 To levy fees, the Act requires that a Statement of Charging Principles (SoCP) is in force.2 This publication is a consultation on our SoCP.

What we are proposing – in brief Our proposed SoCP is set out in Annex 1 of this document. Amongst other things, it includes details on: • How we will determine the fees payable by providers of regulated services; • How and when we will publish our tariff tables; • How we will invoice fees; and • How providers can make payments.

Next steps¶

1.3 Stakeholders are invited to respond to this consultation by no later than 5pm on 9 January 2026. After the consultation window closes, we will consider all responses and publish our final SoCP by end Q1 2026.

1.4 On 20 November the Secretary of State laid The Online Safety Act 2023 (Fees) (Threshold Figure) Regulations 20253 in parliament that, subject to parliamentary approval, will bring the online safety fees regime into force on 11 December 2025. Today, we also published our notice that the 2026/27 charging year will be the initial charging year of the regime.45 Fee liable providers whose QWR meets of exceeds the threshold figure of £250 million and are not otherwise exempt have until 11 April 2026 to notify us of their QWR.

1.5 Forecast online safety regulatory costs for the 2026/27 charging year will be published in our annual tariff tables on or before 31 March 2026. These tables will be updated with details of the online safety fee tariff in Q2 of the 2026/27 charging year (Q3 of 2026 calendar year) and we expect invoices to be issued to providers by September 2026.

1 Part 6 of the Act. 2 Section 88(1) of the Act. 3 Threshold Regulations. 4 Notice of 2026 charging year. 5 In accordance with section 90 of the Act.

Section 2 Introduction¶

How we are funded¶

2.1 Our online safety responsibilities under the Act require significant ongoing resources to implement and oversee the regulatory regime. These include, amongst other things:

i Consulting on and delivering the many regulatory documents required by the Act;

ii Undertaking research into the causes of, and mitigations for, harms online; and

iii Engaging effectively with online services and other interested stakeholders to drive compliance, including through our supervision programme and by undertaking enforcement activity where necessary.

2.2 To date, with the agreement of HM Treasury, our costs relating to online safety have been covered by retaining amounts paid by spectrum providers under the Wireless Telegraphy Act (WTA receipts). However, the Act includes provisions that mean our costs must ultimately be recovered from the providers of regulated services through a fees regime. This is consistent with what already applies in our other regulated sectors.

Requirements for the SoCP¶

2.3 The SoCP must set out the principles that we propose to apply in determining the fees payable by providers6 and these principles must meet certain criteria:7

i That on a year-by-year basis, the aggregate amount of the fees payable to Ofcom is sufficient to meet, but does not exceed, the annual cost to Ofcom of the exercise of our online safety functions;

ii That the fees are justifiable and proportionate, having regard to the functions in respect of which they are imposed; and

iii That the relationship between meeting the cost of the exercise of those functions and the amount of the fees is transparent.

2.4 The SoCP must also:8

i Include details relating to the computation model used to calculate fees payable. Fees payable are to be equal to the amount produced by a computation made by reference to the provider’s QWR for the qualifying period relating to that charging year,9 as well as any other factors that we consider appropriate;

ii Include details about the meaning of ‘QWR’ and ‘qualifying period’; and

iii Specify the threshold figure contained in regulations set by the Secretary of State.10

6 Section 88(1) of the Act. 7 Section 88(2) of the Act. 8 Section 88(3) of the Act. 9 A charging year is any period of 12 months beginning with 1 April, except such a period that falls before the initial charging year. See Section 90 of the Act. 10 Threshold regulations, laid in Parliament by DSIT, 20 November 2025 and expected to come into force 11 December 2025.

2.5 In our Online Safety Fees and Penalties Statement (fees statement), we set out, among other things, our final decisions regarding the computation model that we will use to charge fees and the definitions of the terms ‘QWR’ and ‘qualifying period’.11 The threshold figure has been specified in the The Online Safety Act 2023 (Fees) (Threshold Figure) Regulations 2025 laid12 by the Secretary of State. We refer to these decisions in the SoCP, but they are not subject to consultation.

Structure of this consultation¶

2.6 For ease, we have structured the remainder of this document as follows:

i Chapter 3: Approach to the SoCP.

ii Annex 1: Draft SoCP.

iii Annex 2: Our approach to cost identification and allocation.

iv Annex 3: Definitions and abbreviations.

v Annexes 4-7: Responding to this consultation.

2.7 The focus of this consultation, and the document on which we are seeking views, is the draft SoCP in Annex 1. The remainder of this chapter describes broader documentation relevant to the fees regime.

Relationship with other documents to implement the fees regime¶

2.8 The fees regime is underpinned by three statutory instruments and a Secretary of State-approved exemption:

i The Online Safety Act 2023 (Qualifying Worldwide Revenue) Regulations 2025 (QWR Regulations)13 set out how the QWR of a provider of a regulated service should be determined and define the ‘qualifying period’ in relation to a charging year. These came into force on 8 October 2025;

ii The Online Safety Act 2023 (Fees Notification) Regulations 2025 (Notification Regulations) explain how providers should submit a fees notification and the evidence they must include in their notification. These came into force on 14 September 2025;14

iii The Online Safety Act 2023 (Threshold) Regulations 2025, laid in Parliament by the Secretary of State on 20 November, specify £250 million as the QWR threshold figure at which providers become liable to pay fees. These regulations are expected to come into force on 11 December 2025;

iv On 20 November 2025, the Secretary of State approved the £10 million UK referable revenue exemption detailed in our fees statement.

2.9 We have published three documents setting out the relevant background and support to the statutory instruments, as follows:

i Fees statement of 26 June 2025, which sets out a number of important decisions regarding implementation of the fees regime. These include the definition of

11 Statement on Online Safety fees and penalties (fees statement), 26 June 2025. 12 The Online Safety Act 2023 (Fees) (Threshold Figure) Regulations 2025 13 The Online Safety Act 2023 (Qualifying Worldwide Revenue) Regulations 2025 (QWR Regulations). 14 The Online Safety Act 2023 (Fees Notiﬁcation) Regulations 2025 (Notiﬁcation Regulations).

QWR and qualifying period, exemptions from fee-related duties and our approach to the SoCP.15

ii QWR guidance of 21 November 2025, which provides guidance for providers on how to calculate their QWR in accordance with the QWR Regulations.16

iii Notification guidance of 21 November 2025, which provides guidance on when notifications are required under Part 6 of the Act, and how providers can comply with the Notification Regulations.17

15 See chapters 3 and 7 of our fees statement. 16 Online Safety fees and penalties - guidance on QWR 17 Online Safety fees and penalties - notiﬁcation guidance

Section 3 Approach to the SoCP¶

What is this chapter about? We have set out: • A short summary of the approach we have taken to preparing the draft SoCP set out in Annex 1; • Our assessment of the likely impacts arising from the SoCP; and • The consultation question on which we are seeking stakeholders’ views.

Summary of our approach¶

3.1 In our fees statement, we set out our final decision on the computation model which we will use to calculate fees.18 We decided:

i To calculate fees based on QWR and not take account of other factors.

ii To set fees using a single percentage approach. This means that each provider liable to pay fees would pay the same percentage of their QWR, meaning providers with a higher QWR pay higher fees in absolute terms.

iii That the precise percentage would be set out each year in our tariff tables and calculated as our annual costs of regulating online safety divided by the total QWR of all providers liable to pay fees (QWR base) in that charging year.

3.2 The draft SoCP set out in Annex 1 of this document consolidates our final decisions relevant to the SoCP (specifically, our computation model, and the definition of QWR and qualifying period) set out in our fees statement. To the extent that it does so, we are not consulting on these matters as they have already been subject to public consultation. As explained in paragraph 2.9 above, our decision regarding the definition of QWR and qualifying period has also been reflected in the QWR Regulations which came into force on 8 October 2025.

3.3 The draft SoCP also sets out additional proposals about the processes and wider principles we intend to follow when charging fees such as regarding tariff-setting and invoicing practicalities. We are consulting on these additional proposals which are in line with the approach we have taken in other regulated sectors.

3.4 We note that the draft SoCP is intended to be relatively high level. It does not include more granular details of the fees process, such as the bank details for payment or the means by which invoices will be sent. These details will be communicated separately to fee-paying providers.

3.5 The final version of this SoCP, which we will publish in Q1 of 2026 calendar year, will be binding. Any changes to the SoCP must first be subject to re-consultation.

18 See chapter 7 of our fees statement.

Matters to which we have had regard when preparing the SoCP¶

3.6 When preparing the draft SoCP, we have had regard to the principles set out in the Secretary of State’s guidance about fees, as considered in our published fees statement on online safety fees.19

3.7 We are also satisfied that the draft SoCP is in line with the approach set out in our fees statement and that the principles set out therein are likely to satisfy the criteria set out in section 88(2) of the Act for the reasons set out below.

Fees meet but do not exceed our annual regulatory costs¶

3.8 The draft SoCP explains that we will set the percentage tariff for a particular charging year taking into account the total estimated cost associated with our online safety functions in that year. This will include an estimation of our direct costs from online safety regulation and a share of our costs that cannot be directly attributed to any regulatory sector (i.e., common costs). By adopting the same approach to cost identification and allocation across all our regulatory sectors, there will be no duplication in estimated or actual costs. We will subsequently calculate our actual costs in accordance with the approach adopted in other sectors that we regulate, and as summarised in Annex 2. The SoCP is clear that, to the extent that there is any over or under recovery of expenditure, this will be carried forward to the next charging year in accordance with the Act.

Fees are justifiable and proportionate¶

3.9 As explained in the fees statement, fees will be levied only on the providers of regulated services and, in each case, based on their QWR. Broadly speaking, this means a provider’s revenues which arise in connection with the provision of ‘relevant parts’ of its regulated services (i.e., those parts on which user-generated content, search content and regulated provider pornographic content may be encountered). In determining fees, we will not take into account other revenues such as those that arise only in connection with unregulated services or non-relevant parts of regulated services.

3.10 Fees will also only apply to providers with a QWR of at least £250 million (and whose UK referable revenues are at least £10 million) in the relevant qualifying period. As explained in the fees statement, we anticipate an approximate 0.02 – 0.03% fee tariff for providers whose QWR is at or above the QWR threshold and consider that this is justifiable and proportionate to recover our online safety regulatory costs. We also note that, on an annual basis, our operational costs for all sectors that we regulate are subject to an overall cap set by HM Treasury and DSIT and our Board to ensure we can discharge our duties. Additionally, we are subject to external audits, conducted by the National Audit Office.

3.11 We have explained in chapter 7 of the fees statement why we do not consider it appropriate or proportionate to take into account other factors when calculating fees, such as risk or categorisation status of services.

19 Paragraph 7.12 of our fees statement.

The relationship between fees charged and our estimated costs is transparent¶

3.12 We have been transparent about the relationship between meeting the costs of our online safety regulation and the fees charged to providers who are in scope of the fees regime. We have explained the approach that we propose to take in setting fees in our fees statement (and in our prior public consultation) as well as in the SoCP in Annex 1.

Impact Assessment¶

3.13 Chapter 10 of the fees statement sets out our assessment of the impact of our general approach to online safety fees, including regarding our decision to set fees based solely on a provider’s QWR.20 To the extent that the draft SoCP in Annex 1 merely reflects this approach, we do not consider it necessary to carry out a further impact assessment.

3.14 The draft SoCP also contains provision regarding the practicalities of tariff-setting and invoicing, and which were not the subject of a decision in the fees statement. Our provisional view is that there are unlikely to be any significant adverse effects from these provisions, including for small and micro businesses. Rather, we would expect any impacts from the draft SoCP to be positive. In particular, the draft SoCP provides transparency to the providers of regulated services about how we will determine their liability, if any, to contribute towards our online safety costs, and the associated timings. It also seeks to minimise the burden on fee-payers whose fee liability is more than £75,000, as it enables for the payment of their fee in monthly instalments, consistent with Ofcom’s general approach to fees across its other regulated sectors.

3.15 In terms of our equality impact assessment and Welsh language assessment, the relevant impacts of our decisions have already been assessed in Annex 7 of our fees statement.21

Consultation question¶

3.16 As noted above, the draft SOCP consolidates decisions that have already been made (and which have previously been subject to consultation). To the extent it does so, we are not seeking to re-consult on those decisions. We are instead particularly interested in stakeholders’ views on any additional proposals contained in the SoCP which have not been the subject of prior consultation.

3.17 Readers are advised to read the draft SoCP in full before responding to the consultation rather than relying on the short summary in this chapter.

Consultation question: Do you have any comments on the draft SoCP set out in Annex 1 of this document? Please provide reasons and evidence in your response to this consultation.

20 Chapter 10: Impact Assessment of our fees statement. 21 Annex 7: Equality impact assessment & Welsh language assessment of our fees statement.