BBC could force more OAPs to pay licence fee: It will be free to deny perk to elderly middle-class viewers

  • Culture Secretary John Whittingdale announces new deal with the BBC
  • Agreement sees BBC shoulder cost of free TV licenses for pensioners
  • But the corporation will then determine if the perk continues beyond 2020
  • Government will also stop people using iPlayer without a licence
  • Licence fee will also rise each year from 2017 in line with CPI inflation
  • It means the charge is on course to hit almost £155 a year by next election

Middle-class pensioners may have to start paying for their television licence within five years, under new Government plans.

The BBC will have to pick up the £650million-a-year bill for providing free TV licences to the over-75s, the Culture Secretary confirmed yesterday.

However, in a move that could hit millions of middle-class families, it will be allowed to change the rules from 2020.

Culture Secretary John Whittingdale confirmed that the corporation would pay for free TV licences for 4.5million over 75s instead of the government

Culture Secretary John Whittingdale confirmed that the corporation would pay for free TV licences for 4.5million over 75s instead of the government

John Whittingdale said yesterday that the Corporation would take ‘full responsibility for [the] policy’ from 2020, which currently saves the over-75s £145.50 a year. That means it will be at liberty to raise the age at which people are entitled to a free television licence, or to introduce a means-testing system so that they are only given to poorer pensioners.

He added: ‘Under this agreement, the BBC will take on the cost of providing free television licences for those households over 75 and this will be phased in from 2018/19, with the BBC taking on the full costs from 2020/21.’

The Corporation has fought hard against proposals that it should shoulder the cost of free television licences for the over-75s, amid concerns that it amounts to an effective budget cut of £650million a year.

Five years ago, when the Government last tried to make the BBC take on the extra cost, its former director general, Mark Thompson, and the entire BBC Trust threatened to resign en masse.

More recently, Danny Cohen, the BBC’s director of television, said it would axe programmes and potentially television and radio channels if it was forced to take on the burden.

The bill is currently paid for by the Department for Work and Pensions.

But the Government made a series of concessions to the BBC yesterday in order to soften the blow.

In addition to assuming control of the rules for free television licences, the BBC will be able to claw back £150million in licence fee income as the Government closes the so-called ‘iPlayer loophole’.

It has been agreed that legislation will be rushed through next year that will force households to pay the licence fee, regardless of whether they watch BBC programmes live or on the iPlayer catch-up service.

Last night the BBC’s director general, Lord Hall, welcomed the deal. He said: ‘We have secured the right deal for the BBC in difficult economic circumstances for the country.

‘This agreement secures the long term funding for a strong BBC over the next Charter period.’

Mr Whittingdale announced that the Government would change the law to make it illegal for people to watch the BBC's popular iPlayer service without a licence

Mr Whittingdale announced that the Government would change the law to make it illegal for people to watch the BBC's popular iPlayer service without a licence

Shadow Culture Secretary Chris Bryant accused the Tories of launching a 'smash and grab' on the BBC's budget

Shadow Culture Secretary Chris Bryant accused the Tories of launching a 'smash and grab' on the BBC's budget

FEE WILL RISE WITH INFLATION: ANNUAL LEVY TO JUMP BY £10

The BBC licence fee will start to rise with inflation from 2017, the Culture Secretary said yesterday.

According to the Government’s own forecasts, this would see the annual levy jumping from £145.50 to almost £154 by 2020.

John Whittingdale told MPs that when the new charter comes into operation in April 2017, the fee would increase in line with the rate of inflation.

However, he warned that this rise was dependent on the BBC being able to prove it was being as efficient as elsewhere in the public sector.

He told MPs that the BBC needed to take action to cut ‘eye-watering’ salaries and would need to justify ‘every aspect’ of its activities.

And he went on to suggest that the licence fee could be cut if the charter review process concludes that the ‘scale and scope’ of the Corporation’s activities is too wide.

Under the new deal, the Government also agreed to let the BBC off the burden of paying for the roll-out of rural broadband.

The Corporation will have to pay £80million towards the scheme in 2017, but that figure will drop to £20million the following year and will be wiped out altogether by 2020. Mr Whittingdale added that the Government is still considering whether to decriminalise licence fee evasion – a move that is predicted to cost the BBC tens of millions of pounds and which the Corporation has resisted strongly.

However, not everyone was quite as pleased with the agreement. Lord Birt, who was head of the BBC from 1992 to 2000, led a chorus of criticism from peers for the plan.

‘This is a deeply shocking announcement,’ he told the House of Lords. ‘This Government and the last Government have essentially set a very dangerous precedent.’

The Government does not need to make any legislative changes to enforce the change, now that it has already been agreed with the BBC.