BBC may have to scrap free TV licences for the over-75s, warns Hall

Director-general tells MPS cost will be too onerous for corporation when it takes over subsidy in 2020

THE BBC could bring an end to free television licences for the over-75s when it takes responsibility for the scheme in two years’ time, the director-general has said.

Lord Hall of Birkenhead said the corporation would struggle to meet the £725 million cost of maintaining the subsidy.

Everyone aged 75 or over can apply for a free licence. There were 4.45million over-75s licences in place in 201718.

The BBC was forced by the Government to shoulder the “burden” of the scheme, as Lord Hall described it, as part of its most recent funding deal. The corporation will take full responsibility for the costs in 2020. Asked by MPS if he could guarantee that the free licences will remain available, Lord Hall said: “I can’t give you a guarantee it will continue. The concession, as formulated, comes to an end in June 2020. We have got to decide what will replace it.”

He told the digital, culture, media and sport select committee that one option was to continue funding free licences. Other options include meanstesting to exclude those with higher incomes, or removing free licences from those with a spouse or partner who is under 75.

“We have got to be mindful of two things: we know the over-65s and over75s consume many, many more BBC services than others. That’s good – we are many people’s companion. On the other hand, there is real hardship among some or many of those over 75.

“This is a very difficult issue. I suspect that’s one reason why we have to think about it, and why the Government said, ‘It’s over to you’.” The “weighty decision” will be discussed internally over the autumn and winter before it is put out to public consultation, he added. The current cost of a colour television licence is £145.50 and the £725 million cost represents around a fifth of the BBC’S total budget.

Lord Hall said the corporation was facing increased financial pressure because drama is becoming more expensive to make and streaming companies have raised the game. “Netflix and Amazon and all the very good things they are doing has increased [audience] expectations of the BBC,” he said.

The corporation has cut back in recent years but “the easier savings have been made… we are having to talk about changes in the nature of the services that we offer”.

The BBC has paid out £1.5 million in costs and damages, with more to come, for the Sir Cliff Richard privacy case.

Lord Hall apologised to the star over the BBC’S coverage of a police raid on his home. “We overdid it, to be blunt with you,” he said.