As you know, in 2019, I stood on a manifesto that made clear that the BBC should do the right thing and fund TV licences for over 75s. As such, the BBC’s decision to stop funding free TV licences for most over 75s was very disappointing. Only those who receive the Pension Credit benefit are eligible for a free licence.
I have received a large amount of correspondence on the issue and would like to take this opportunity to set out the rationale behind the BBC’s decision as well as my own thoughts on the matter.
The responsibility for making this decision was passed on to the BBC by Parliament in 2017, following the Government’s decision to abolish funding for the licence fee concession for all those aged 75 and over in 2015. This means that the BBC would have to plug the almost £750m hole in funding to continue providing free TV licenses for all those aged 75 and over.
Currently, virtually all the TV licence fee goes to fund programmes, services and related activities, so continuing to fund free TV licences for all those aged 75 and over would also reduce the money available for programmes and services - impacting all licence fee payers.
As the former Chairman of the All-Parliamentary Party Group for the BBC, I know this decision was not taken lightly.
The Government’s decision in 2015 put the BBC between a rock and a hard place – facing either a cut to its broadcasting services to continue funding free licence fees or facing public backlash for making cuts to fees.
After a consultation that received over 190,000 responses, the BBC took the decision to introduce means testing by using the Government’s own measure of pension income, Pension Credit. This will still cost the BBC around £209m a year but will ensure that those on the lowest incomes continue to enjoy broadcasting services and those who can afford to do so, will have to pay for the licence.
For me, the BBC is not only a British institution but also a public good. In an era of fake news and misinformation, we would be poorer for losing the impartiality, independence and educative material it provides to millions not just in the UK but also abroad. This is the view I expressed in a parliamentary debate which called for the restoration of free TV licenses, which you can view here.
In the end, no outcome would have been perfect. As you may be aware, under the BBC’s current plans, the poorest pensioners will continue to be helped, as the BBC stated that those eligible for Pension Credit will still receive a free TV licence. However, I do not believe that this is the end of the conversation about what the BBC can do to assist older people.
