Implementation of the Online Safety Act: Fees threshold and exemptions to fee paying - letter from DSIT Secretary of State to Ofcom
Published 20 November 2025
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The Rt Hon Liz Kendall MP
Secretary of State for Science, Innovation and Technology
22-26 Whitehall
London
SW1A 2EG
18 November 2025
Dear Dame Melanie,
I am writing to confirm my position on the online safety fee regime. As agreed by Parliament during the passage of the Online Safety Act, companies raising revenue from online services should cover the costs of regulation. The government shares Ofcom’s intention for 2026/2027 to be the first charging year.
The government agrees with Ofcom’s recommendation to set the Qualifying Worldwide Revenue (QWR) threshold at £250 million. This threshold ensures that small services which fall below this threshold do not face burdens of fee paying.
I also support and approve Ofcom’s proposal to exempt from paying fees providers whose UK-referable revenue is less than £10 million. I agree with Ofcom’s rationale that this exemption will help incentivise companies to enter the UK market, without liability for fees whilst they build their UK presence.
As per our previous correspondence, I welcome Ofcom’s commitment to reviewing the evidence base for exemptions for certain sectors, such as vertical search services, where they pose a lower risk to users. As implementation of the fee regime progresses, I encourage you to prioritise this.
The government will continue to engage with industry and monitor concerns to ensure that the implementation of the fee regime is proportionate, sustainable and fair to providers, as well as ensuring it is in line with the government’s wider objective of growing our digital economy.
I also welcome Ofcom’s willingness to engage in a review of the fee regime to ensure the regime does not place undue burdens on safe and responsible businesses. As mentioned in my previous letter, I intend to keep the threshold figure under review following the initial charging year, as per my duty under s.86(3) of the Act.
I will now proceed to lay a Statutory Instrument (SI) in Parliament to specify the Qualifying Worldwide Revenue (QWR) threshold figure in regulations.
Yours sincerely
The Rt Hon Liz Kendall MP
Secretary of State for Science, Innovation and Technology