BBC’s TV licence fees for over-75s could cost taxpayer £1.8bn to save the BBC £93m

As the British Broadcasting Corporation (BBC) strips around 3 million people from free viewing, Age UK has urged those affected to use a loophole of claiming Pension Credit.

The corporation’s decision to strip the free television licence from the over-75s could end up costing taxpayers more than it was hoped to save after almost 600,000 eligible pensioners were urged to sign up for benefits to qualify.

From Saturday three million over-75s are being told that they have to start paying for the £157.50 annual charge or face the threat of criminal prosecution.

The BBC ended its free TV licences for most over-75s on Saturday the 1st of August, after the plan was delayed by two months because of the coronavirus pandemic.

The decision has been heavily criticised as insensitive as many older people have relied on television channels during lockdown as their main source of news and information during challenging months of the pandemic.

Many have also taken to the streets to protest the BBC stripping pensioners of the licence fee.

Age UK, the charity for the elderly which has been campaigning against the decision, last night urged the 590,000 over-75s who are currently eligible for the credit but have not applied for it to put in a claim.

Caroline Abrahams, Age UK’s charity director, said: “We encourage everyone to check if they are eligible for Pension Credit, the qualifying benefit for a free licence. Older people may be especially interested to learn that if another ten 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 find themselves on average some £2,000 better off a year, so it’s definitely worth giving it a go.”

A BBC spokesman said: “Those over-75 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 to support the poorest oldest pensioners.

“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 August 1, we’re introducing a new plan so they can pay safely 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.

“Additionally, we have provided a free telephone information line where customers can access recorded information on the new policy by calling 0800 232 1382.”

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