Benefits bid to beat end of over-75s’ free TV licences

THE BBC’S decision to stop free television licences for the over-75s could end up costing taxpayers more than it was hoped to save, after 600,000 eligible pensioners were urged to sign up for benefits to qualify.

From today, three million over-75s are being told that they have to start paying the £157.50 annual charge, or face the threat of prosecution. The 1.5 million over-75s who claim £58 a week Pension Credit can keep the free licence. The decision has been heavily criticised as insensitive, as many older people have relied on television during lockdown as their main news source.

Last night Age UK urged the 590,000 over-75s who are currently eligible for Pension Credit but have not applied for it, to put in a claim. Caroline Abrahams of Age UK, said: “If another 10 per cent or so of over-75s successfully claim Pension Credit, this would entirely wipe out the Government’s savings from passing responsibility for free licences to the BBC, without also transferring to them the funding to pay for them. Anyone who successfully claims Pension Credit could also be, on average, some £2,000 better off a year.”

If all eligible pensioners claim, it will add £1.8billion to the Government’s annual benefits bill, against the BBC’S smaller loss of nearly £93million in licence fee income. The corporation says that the cost of providing free licences to all over-75s would cost it more than £1billion by the end of the decade.

Age UK also warned that the BBC’S failure to contact over-75s in time for the Aug 1 licence fee deadline will leave millions of elderly people in arrears.

The BBC is refusing to say how long it will take to send out 4.5 million letters with payment information, only that it will take several months.

People who begin paying from today would pay £13.18 per month, but those unable to set up a licence until, for example, Dec 1 will have to spread the cost over a smaller period and pay nearly £20 a month.

A BBC spokesman said: “Those over75 and in receipt of Pension Credit will be able to claim a free TV licence from 1 August – paid for by the BBC – with 1.5 million households eligible. This is the fairest decision ... our focus is on making the transition as safe and easy as possible for all older people. Over 75s’ households are being given plenty of time to set up their licence and can do so safely without leaving home.

“For those who currently receive a free TV licence but have to pay from Aug 1, we’re introducing a new plan so they can pay in smaller, more flexible instalments. TV Licensing is writing to over-75s households with a separate dedicated contact centre telephone number and those over 75 do not need to do anything until they have received the letter.” Recorded information on the new policy can be heard on 0800 232 1382, which is free to call.