Millions of over 75s could lose their ‘free’ BBC TV licences, as the BBC considers whether to stop giving the benefit to better-off pensioners.
Supporters of the BBC, including left-wingers Lord Bragg and Lord Puttnam, urged the BBC to means- test the perk, worth £147 a year, when it takes over responsibility from the government in 2020 for funding ‘free’ BBC licences.
They believe that Theresa May’s decision to means-test winter fuel payments for pensioners has given the BBC the opportunity to follow suit. If the BBC does not restrict the perk, it faces losing £750m in BBC licence-fee income from 2020.
Bragg, 77, who pays voluntarily as part of a campaign by celebrities to persuade better-off pensioners to support the BBC, said: “It would be a very sensible idea.” Puttnam, 76, who chaired an inquiry into public service TV last year, said the BBC would be “silly” not to talk to the government about means-testing ‘free’ BBC TV licences.
At present one in six households, or 4.36m, receive the benefit regardless of income, costing the taxpayer £622m in 2015-16, almost as much as the entire cost of national and local BBC Radio.
John Whittingdale, who as culture secretary struck the agreement in 2015 for the BBC to meet the cost of the concession, said: “I can see a case for means-testing on the same grounds of why should a rich retired person get a winter fuel payment, so why should they get a ‘free’ BBC TV licence? You could restrict it to households who only contain people over 75 or means-test it, which is now administratively a bit easier because we are going to have to do it for winter fuel payments.
“But these are matters for the BBC to consider. They could get rid of the free BBC TV licence altogether if they chose to do so but they could not do it until 2020.”
The BBC has asked Frontier Economics, a consultancy chaired by Lord O’Donnell, to look at options.
In a statement, it said: “The Digital Economy Act transfers control over ‘free’ TV licences to the BBC in June 2020 — the BBC has no plan to make any changes to the current over-75s policy.”