Singer-songwriter Chris Difford has joined the chorus of disapproval provoked by the Performing Rights Society's (PRS) decision to impose license fees for small livestream performances that have become a lifeline to struggling artists.

With the COVID-19 pandemic stopping live music in its tracks a year ago – and with little sign of concerts restarting – many musicians have taken to streaming live performances, from either small venues or inside their homes.

The PRS has imposed a new tariff of between 8 and 17 percent for livestreams, far above its usual 4.2 percent gross charged for live concerts. Shows that generate between $338 and $676 will be charged a flat fee of $60 plus VAT.

Difford, co-songwriter in the popular band Squeeze, called the announcement a "kneejerk" reaction that will heap further damage on an industry that is "on its knees."

Difford has hosted regular shows during lockdown that have raised more than $45,000 for charities including The Trussell Trust, Save Our Venues, and Help Musicians.

He told CGTN: "I suspect, like many companies, PRS is in crisis mode and trying to figure out how to balance the books. However, the timing doesn't look that great from an artist's point of view, particularly young artists who have only one outlet at the moment, and that is via Zoom."

He added: "It's not reasonable for younger bands and artists that need to earn a bit of pocket money at this time to be paying PRS fees for livestreaming."

Difford doesn't rule out the idea of livestream fees, but thinks the timing is wrong to introduce them now. 

"There is maybe some merit in the future for there to be a role for the PRS, but let's see where we are in six months' time," he says. "If festivals and live shows aren't coming back for another year one could look at it again, but I don't think now is the right time."

The PRS is usually regarded as a musician's best friend, acting to license music usage and collecting royalties for its members when their work is performed, broadcast, streamed, downloaded, reproduced, played in public or used in film and TV. 

According to its website, PRS for Music administers the performance rights and mechanical rights of around 25 million musical works on behalf of its songwriters, composers and publishing members. 

Once operating costs are deducted, all remaining money is distributed to songwriters, composers and publisher members. It operates across the UK but also collects royalties from overseas societies throughout the year. 

In normal times venues or promoters deduct PRS fees from artist payments, but with musicians themselves organizing live-streamed gigs and booking the venue, few expected the imposition of the new charge – and particularly the decision to backdate its collection to the start of the pandemic.

Erik Stein, from UK electronic duo Cult With No Name, said the pair had been considering livestreaming their own shows but that the announcement had "planted a seed of doubt."

Stein told CGTN: "It's another hoop to jump through bureaucratically, particularly for people who are unsure about livestreaming concerts when it's a new arena for them."

He added: "Playing devil's advocate, regulation is not something that's unwelcome by musicians. Musicians are fighting for better regulation of streaming services and we tend to feel that PRS is on our side for those sorts of things. But this feels a little bit like going after the wrong people – the ones on the breadline who have missed out the most from the lack of a live music scene over the last year."

An open letter from the Featured Artists Coalition (FAC) and Music Managers Forum (MMF), signed by artists including Liam Gallagher, Dua Lipa and Arctic Monkeys, urged the PRS to reconsider.

Mark Davyd, CEO of the Music Venue Trust (MVT), told The Guardian the plan was "a tax in the middle of a crisis on people who need the money. No venues or promoters are making money [from live-streamed gigs] – it's for artists or for charities they care about." Davyd believes live-streamed shows by grassroots artists will "grind to a halt."

The MVT has estimated that more than 400 small venues in the UK risk permanent closure, due to the pandemic, and said these "onerous new licenses" added to the danger.

According to Stein: "This will affect smaller venues and certain types of genres that play to kind of small, intimate crowds, like folk and jazz."

The PRS insisted no artists would lose money, stating that any fee taken for livestreaming gigs would be made up by royalties due. They also said small-scale events would not be subject to retrospective payments.

A PRS spokesperson said: "In no way is PRS for Music seeking to prevent artists, many of whom are PRS members, nor venues, from generating an income from online concerts. It goes without saying our songwriter and composer members, and those who don't perform and therefore only earn from their songwriting and composing, have seen a significant impact on their incomes from the closure of the live music sector. It is essential that they can fairly share in the value being generated by online live concerts which are using their works."