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BBC may ask over-75s to give up free TV licence | BBC may ask over-75s to give up free TV licence |
(35 minutes later) | |
People over 75 may be asked to give up their free TV licence or make a voluntary contribution to it, under plans being considered by the BBC. | People over 75 may be asked to give up their free TV licence or make a voluntary contribution to it, under plans being considered by the BBC. |
The corporation must absorb the loss of £650m worth of licences for over-75s from 2020 as part of a funding deal agreed with ministers last year. | |
A report on ways to appeal for voluntary contributions is due in 2016. | A report on ways to appeal for voluntary contributions is due in 2016. |
The BBC has refused to comment on suggestions that older celebrities might front a publicity campaign. | The BBC has refused to comment on suggestions that older celebrities might front a publicity campaign. |
The Times reported that such a campaign could be run by personalities such as Sir Michael Parkinson and actress Dame Helen Mirren. | The Times reported that such a campaign could be run by personalities such as Sir Michael Parkinson and actress Dame Helen Mirren. |
'Loophole' | 'Loophole' |
Historically, the government has met the cost of free licence fees for over-75s, transferring the money to the BBC annually. | |
In 2013-14 the total bill for the government was £608m, which amounted to about a fifth of the BBC's budget. | |
The corporation's responsibility for the free licences will be phased in from 2018-19, with the full liability met by the BBC from 2020-21. | |
At the time of the announcement in July, the BBC said it was the "right deal... in difficult economic circumstances". | At the time of the announcement in July, the BBC said it was the "right deal... in difficult economic circumstances". |
In return, the government agreed the corporation could ask for voluntary payments from those who currently receive free licences. | In return, the government agreed the corporation could ask for voluntary payments from those who currently receive free licences. |
Ministers also agreed the BBC could look into ways of closing the "iPlayer loophole", which at present means that if people only watch catch-up TV and do not watch any live TV, they do not need a licence. | Ministers also agreed the BBC could look into ways of closing the "iPlayer loophole", which at present means that if people only watch catch-up TV and do not watch any live TV, they do not need a licence. |
The BBC has said, though, that there is no proposal to make people pay to watch catch-up TV on iPlayer on top of the licence fee. | The BBC has said, though, that there is no proposal to make people pay to watch catch-up TV on iPlayer on top of the licence fee. |
* £271.4m of the total licence fee pot is used by the government to fund Welsh language channel S4C, the local TV scheme and broadband rollout. | * £271.4m of the total licence fee pot is used by the government to fund Welsh language channel S4C, the local TV scheme and broadband rollout. |
Labour peer Dame Joan Bakewell - formerly a government-appointed champion of the elderly - told BBC London the licence fee represented "enormous value for money" for pensioners, adding that those who had the means to pay should do so. | Labour peer Dame Joan Bakewell - formerly a government-appointed champion of the elderly - told BBC London the licence fee represented "enormous value for money" for pensioners, adding that those who had the means to pay should do so. |
But she said the BBC should not be in a situation where it had to ask. | But she said the BBC should not be in a situation where it had to ask. |
"The government pulled a fast one recently because what they did was this... transgress from one enterprise, which is government policy about [cutting] welfare, into the BBC's licence fee - which is a completely original and outrageous undertaking." | "The government pulled a fast one recently because what they did was this... transgress from one enterprise, which is government policy about [cutting] welfare, into the BBC's licence fee - which is a completely original and outrageous undertaking." |
Roger Laughton, a former BBC and ITV executive, agreed the BBC was "between a rock and a hard place". | Roger Laughton, a former BBC and ITV executive, agreed the BBC was "between a rock and a hard place". |
But Dot Gibson, general secretary of National Pensioners, warned the corporation against using celebrities to try to persuade ordinary pensioners to give up their free licence. | But Dot Gibson, general secretary of National Pensioners, warned the corporation against using celebrities to try to persuade ordinary pensioners to give up their free licence. |
"Many older, vulnerable people might be taken in by this when they should be protected," she said. | "Many older, vulnerable people might be taken in by this when they should be protected," she said. |
"The government needs to take back responsibility for the free TV licence or we're going to see it cut by stealth and then eventually removed altogether." | "The government needs to take back responsibility for the free TV licence or we're going to see it cut by stealth and then eventually removed altogether." |
The BBC confirmed that Frontier Economics, a consultancy led by former cabinet secretary Lord O'Donnell, would report back within months on the best approach to asking people for contributions. | The BBC confirmed that Frontier Economics, a consultancy led by former cabinet secretary Lord O'Donnell, would report back within months on the best approach to asking people for contributions. |
It said it would then "look at the best way forward, including whether to run a campaign". | It said it would then "look at the best way forward, including whether to run a campaign". |