Minister: TV must remain free for over-75s

THE Culture Secretary has set up a potential row with the BBC after saying ministers expect free television licences for the over-75s to stay, despite the corporation planning a review.

Lord Hall, the BBC director-general, said in September that it was looking at the future of the £725million subsidy scheme after taking on responsibility from the Government as part of negotiations for its charter renewal.

However, Jeremy Wright told MPS yesterday that he expects the BBC to shoulder payments for over-75s, which are due to continue until the scheduled end of the current Parliament in 2022.

More than 4.46million homes with older residents currently receive a free television licence, saving £150.50 a year.

Mr Wright told MPS on the Commons digital, culture, media and sport committee: “The BBC know, and I shall be reinforcing it in future meetings, that our expectation is that they continue free TV licences for the over-75s. We will leave them in no doubt.”

The transfer of responsibility for the payments is being phased in from 2018-19, with sole responsibility from 2020, when it is estimated it will cost the broadcaster around £725million.

Free television licences were first introduced by Gordon Brown in 2001.

During charter renewal negotiations in 2015 ministers pressured the BBC to start shouldering the bill for the benefit. The corporation appointed consultancy firm Frontier Economics to review the options and it is expected to report in full next month.