Liz Kendall, the Secretary of State for Science, Innovation and Technology, has written to Ofcom chief executive Dame Melanie Dawes confirming the Government’s intention to set the Online Safety Act fee threshold at £250 million in qualifying worldwide revenue, alongside an exemption for providers with UK‑referable revenue below £10 million. The letter, dated 18 November 2025 and published by the Department for Science, Innovation and Technology on 20 November, also confirms 2026/27 as the first charging year.
The Secretary of State states she will lay a Statutory Instrument to specify the threshold in regulations and will keep the figure under review after the initial charging year in line with section 86(3) of the Act. She also asks Ofcom to prioritise assessment of potential sector‑specific exemptions, such as for vertical search services, where user risk is lower.
Under the Online Safety Act 2023, Ofcom may recover the costs of the regime through annual fees. Two statutory instruments underpin the process: the Online Safety Act 2023 (Fees Notification) Regulations 2025, in force since 14 September 2025, and the Online Safety Act 2023 (Qualifying Worldwide Revenue) Regulations 2025, in force since 8 October 2025, which define how revenue is calculated for fees and penalty caps.
Qualifying worldwide revenue covers income generated anywhere in the world from the relevant parts of a regulated service, including advertising and the supply of goods or other services, with mixed revenues apportioned on a ‘just and reasonable’ basis. The qualifying period is the second calendar year before the charging year, meaning 1 January–31 December 2024 revenue will determine liabilities for 2026/27.
Ofcom previously advised ministers to set the threshold at £250 million and to introduce an exemption for providers with low UK‑referable revenue, an approach highlighted during Parliamentary scrutiny as limiting burdens on smaller firms. Kendall’s confirmation aligns government policy with that advice.
Government guidance to Ofcom reiterates that only providers at or above the threshold, and not exempt, will need to notify and pay fees; those below it must still comply with their Online Safety Act duties. The guidance also signals additional charges from 2027/28 to recoup set‑up costs, to be introduced via secondary legislation.
Ofcom’s June 2025 statement on fees and penalties indicated that threshold regulations would be laid in the fourth quarter of 2025, with liable providers required to submit notifications within four months of those regulations coming into force. Ofcom has consulted on detailed guidance for calculating QWR and on the notification process to support compliance.
Today’s correspondence follows a 27 October 2025 letter from DSIT pressing for proportionate implementation and effective enforcement. Together, the letters move the charging framework from design to delivery ahead of the 2026/27 financial year.
Providers likely to be in scope should now assemble service‑level revenue data for calendar year 2024, apply the ‘relevant parts’ definition and just‑and‑reasonable apportionment set out in the QWR Regulations, and prepare supporting documentation for notification once the threshold instrument is made. These steps reflect the regulatory requirements and Ofcom’s guidance materials.