THE ban on product placement on UK television is due to be lifted by the government to throw a financial lifeline to commercial channels.

The change in legislation could see leading brands being prominently used on popular soaps, pulling in an estimated extra £100m for broadcasters, according to the Department for Culture Media and Sport (DCMS).

Commercial television channels like ITV have been hard-hit by the recession. Opening a new income stream could see them regain financial stability but the decision is a big U-turn for the government.

In March Andy Burnham, who was culture secretary at the time, said lifting the ban would raise “very serious concerns” blurring the boundaries between advertising and TV shows.

His successor, Ben Bradshaw, a former BBC reporter, is said to believe “in principle” that the ban needs lifting. He is expected to announce a three-month consultation on the proposals this week.

Broadcasters are currently permitted to use products as props, but not in exchange for cash.

A European parliament directive permitted product placement in sport and light entertainment programmes, if national governments allowed it. Most other EU countries have now lifted restrictions.

A spokesman for the DCMS said: “The current ban puts UK programme makers at a competitive disadvantage.”

The ban will remain in place for the BBC and for all children’s programmes.

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