BBC to scrap free licence fees for most over-75s from August 1

Free TV licences for most over-75s will end on August 1, the BBC announced on Thursday.

It means that more than three million households will be asked to start paying the £157.50 fee from the start of next month.

Exceptions will be made only for households where someone receives the Pension Credit benefit.

The broadcaster was due to introduce means-testing at the start of last month, but it was delayed until August because of the coronavirus.

BBC chairman Sir David Clementi said: “The decision to commence the new scheme in August has not been easy, but implementation of the new scheme will be Covid-19 safe. The BBC could not continue delaying the scheme without impacting on programmes and services.

“Around 1.5 million households could get free TV licences if someone is over 75 and receives Pension Credit, and 450,000 of them have already applied. And critically it is not the BBC making that judgment about poverty. It is the Government who sets and controls that measure.

“Like most organisations the BBC is under severe financial pressure due to the pandemic, yet we have continued to put the public first in all our decisions. I believe continuing to fund some free TV licences is the fairest decision for the public, as we will be supporting the poorest oldest pensioners without impacting the programmes and services that all audiences love.”

The BBC agreed to take on responsibility for funding the scheme as part of the charter agreement hammered out with the Government in 2015 but said it could not afford to continue the universal benefit.

It comes after Jacob Rees-Mogg pressed the BBC to keep free TV licences for all over-75s, urging: “Auntie, come on, let’s be nice.”

Labour frontbencher Valerie Vaz told the Government to “cover the cost” of the licences and highlighted Age UK research showing the importance of television to this age group during the coronavirus pandemic.

But Commons Leader Mr Rees-Mogg replied to his opposite number: “TV licences. I think her message will be heard by the BBC.

“Auntie, come on, let’s be nice to the over 75-year-olds as they’re some of your most loyal viewers and listeners.

“It’d be right to allow them to continue to watch television for free.”

Labour’s shadow culture minister Christian Matheson previously said pensioners will be “forced to choose between eating and watching TV”.

He added: “The BBC is cutting jobs and content to pay for the cost of the licence dumped on them by the Government.

“And pensioners are forced to choose between eating and watching TV.”

Culture minister Matt Warman replied: “The fact is that the BBC has had a generous licence fee settlement and it is deeply disappointing that they have chosen to go down the path that they apparently are going down.

“I would of course hope that there is yet time to reconsider that because he is right to say that television has been vital comfort for many people in the last few months."

The decision comes as the Government is set to announce its response to a consultation on decriminalising licence fee evasion.

The Government launched an eight-week consultation in February which received more than 100,00 responses.

A report in May suggested that hundreds of people had opted to cancel their TV licence each day over the past five months.

The broadcaster has launched a programme of voluntary redundancy as it attempts to make £125 million in savings this year – on top of the previous £800 million savings target – due to the pandemic.

It has also announced job cuts in TV news and local radio in England and said it was axing more than 150 roles in Scotland, Wales and Northern Ireland.

It also plans to cut around 450 jobs in BBC News, to take place at a later date.

The broadcaster said safety would be at the “heart” of the scheme”, as “no-one needs to take any immediate action, or leave their home, to claim for a free TV licence or pay for one”.

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