BBC advised to scrap or alter over 75s’ free licence

The BBC has been told to consider scrapping free TV licences for the over-75s to save money after a report claimed there is little need for the concession.

Campaigners for the elderly said that the move would be “purely economic”, ignoring the true needs of the elderly and denying them a “window to the world”.

Financial auditors commissioned by the broadcaster claim the cost of providing a free BBC service to over-75s would exceed £1 billion a year in a decade’s time.

The report by Frontier Economics said pensioners are now wealthier and healthier, so financial relief and the company afforded by TV are not as needed.

BBC bosses were advised to change the age threshold for the concession, alter the value of the discount or scrap the free licence completely.

The free licence is expected to cost the BBC £745 million by the time the concession runs out in 2020.

A report has suggested three main options for the corporation none of which involve keeping the free licence in its current form.

“We will do nothing without consulting the public”

The cost-saving move has been criticised by Caroline Abrahams, director of the Age UK charity.

She said: “There are two million people aged 75-plus, one in two of whom are disabled and one in four of whom view the television as their main form of companionship.

“For many others, including those who are chronically lonely – a social problem we are far more attuned to than was the case a few years ago – the TV is a precious window on to the world.

“There are also still significant numbers of older people living on very low incomes who would genuinely struggle to pay a licence fee.”

A BBC spokesman said: “There are important issues to consider and we will do nothing without consulting with the public.”

The free licence could cost the BBC £745m by 2020