BBC could scrap free TV licenses for over 75s

Laura Hannam
·Reporter
Could OAPs be about to lose their freebie TV licenses? (Getty Images)
Could OAPs be about to lose their freebie TV licenses? (Getty Images)

BBC could get rid of or restrict free TV licenses to the over 75s after a new study claimed the British elderly are set to become some of the wealthiest ever.

Since 2001 over 75s have been able to waive the £150 annual cost of a TV license, thanks to a clause under the Household Benefits package. This has provided free TV licenses to over 4.6 million British old age pensioners.

However, a new study explains why Britain’s elderly are more solvent than previous generations, and as a result BBC may want to either restrict its over 75s blanket fee waiver or scrap it all together.

Frontier Economics, a corporate spending consultancy, will release a full report in November, but its preliminary findings project that the BBC could lose out on up to £745 million by 2022 if the current free license policy isn’t amended.

It also noted that Britain’s elderly had experienced ‘profound economic changes’ in recent years and that despite the 2008 crash their finances remained ‘relatively protected.’

The BBC is expected to hold a public consultation over the issue, and a final decision is expected to be made by spring 2019.

(PA Images).
(PA Images).

Former cabinet secretary and Frontier Economics chairman Lord O’Donnell addressed the issue with The Times.

“The unwritten social contract between young and old is fraying. Making a decision or weighing the relevant factors between free licenses for older generation and licence fees paid by younger viewers will be an important one.

But the decision can be seen in the landscape of a much bigger issue for the whole of society: what are we prepared to do to maintain the contract between generations that has served us so well?” O’Donnell said.

A BBC spokesperson confirmed that a public consultation on the issue will take place.

“This is an important discussion paper which we are studying carefully. Their full report will be published shortly.

“The government concession ends in 2020. We are going to be consulting on what happens. It might be a concession on the same terms, it may be a different concession.

“We will do nothing without consulting the public. Everyone who wants to contribute will be able to do so,” the spokesperson said.

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