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| Version 3 | Version 4 |
|---|---|
| BBC to fund over-75s' TV licences | BBC to fund over-75s' TV licences |
| (35 minutes later) | |
| The BBC is to cover the cost of providing free television licences for over-75s, the government has confirmed. | The BBC is to cover the cost of providing free television licences for over-75s, the government has confirmed. |
| Culture Secretary John Whittingdale told MPs the changes would be phased in from 2018-19 with the corporation bearing the full cost by 2020-21. | Culture Secretary John Whittingdale told MPs the changes would be phased in from 2018-19 with the corporation bearing the full cost by 2020-21. |
| He said, in return, the government will bring forward new rules on paying to use catch-up services like iPlayer. | He said, in return, the government will bring forward new rules on paying to use catch-up services like iPlayer. |
| Shadow culture secretary Chris Bryant called the announcement "an utter shambles". | Shadow culture secretary Chris Bryant called the announcement "an utter shambles". |
| It has been reported the move will cost the BBC £650m, or one-fifth of its annual budget. | It has been reported the move will cost the BBC £650m, or one-fifth of its annual budget. |
| Key points | Key points |
| Mr Bryant questioned government policies being "briefed to the media" after the plans were revealed in a Sunday newspaper. | Mr Bryant questioned government policies being "briefed to the media" after the plans were revealed in a Sunday newspaper. |
| The current BBC charter is due for renewal at the end of 2016. | The current BBC charter is due for renewal at the end of 2016. |
| In an angry exchange, Mr Bryant stressed the process must be "open and transparent", adding it was "no way to run a whelk stall let alone the world's most respected broadcaster". | In an angry exchange, Mr Bryant stressed the process must be "open and transparent", adding it was "no way to run a whelk stall let alone the world's most respected broadcaster". |
| Mr Whittingdale said he was "surprised" Mr Bryant "was so hostile when I have answered his question", adding the BBC was satisfied with the agreement. | Mr Whittingdale said he was "surprised" Mr Bryant "was so hostile when I have answered his question", adding the BBC was satisfied with the agreement. |
| He said the charter renewal process would ensure the BBC could "adapt to a changing media landscape". | He said the charter renewal process would ensure the BBC could "adapt to a changing media landscape". |
| 'Modernise licence fee' | 'Modernise licence fee' |
| He said he was pleased "the BBC had agreed to play its part" in helping tackle the government's "challenging fiscal position" while further reducing its "reliance on taxpayers". | He said he was pleased "the BBC had agreed to play its part" in helping tackle the government's "challenging fiscal position" while further reducing its "reliance on taxpayers". |
| * £271.4m of the total used by the Government to fund S4C, the local TV scheme and broadband rollout. | |
| BBC director general Tony Hall said: "We have secured the right deal for the BBC in difficult economic circumstances for the country. This agreement secures the long term funding for a strong BBC over the next Charter period. | BBC director general Tony Hall said: "We have secured the right deal for the BBC in difficult economic circumstances for the country. This agreement secures the long term funding for a strong BBC over the next Charter period. |
| "It means a commitment to increase the licence fee in line with inflation, subject to Charter Review, the end of the iPlayer loophole and the end of the broadband ringfence. | "It means a commitment to increase the licence fee in line with inflation, subject to Charter Review, the end of the iPlayer loophole and the end of the broadband ringfence. |
| "In the circumstances, the BBC has agreed take on the costs for free licence fees for over-75s, and after the next parliament, will take on the policy." | "In the circumstances, the BBC has agreed take on the costs for free licence fees for over-75s, and after the next parliament, will take on the policy." |
| In a letter to Mr Whittingdale, BBC Trust chairman Rona Fairhead said the Trust accepted the decision "although we cannot endorse the process by which it has been reached". | In a letter to Mr Whittingdale, BBC Trust chairman Rona Fairhead said the Trust accepted the decision "although we cannot endorse the process by which it has been reached". |
| "We are disappointed that [licence fee payers] have not been given any say in the major decisions about the BBC's future funding. However, we accept that those decisions now set a clear financial framework, subject to the terms... for a Charter Review process that will focus on what the BBC provides in return for its funding. We will want to make sure the public are at the centre of that debate." | "We are disappointed that [licence fee payers] have not been given any say in the major decisions about the BBC's future funding. However, we accept that those decisions now set a clear financial framework, subject to the terms... for a Charter Review process that will focus on what the BBC provides in return for its funding. We will want to make sure the public are at the centre of that debate." |
| Mr Whittingdale also confirmed plans to bring forward legislation to modernise the licence fee next year "to cover public service broadcast catch-up TV". | Mr Whittingdale also confirmed plans to bring forward legislation to modernise the licence fee next year "to cover public service broadcast catch-up TV". |
| He added the government would "carefully consider" decriminalising non-payment of the licence fee. | He added the government would "carefully consider" decriminalising non-payment of the licence fee. |
| When asked if over 75s would be means-tested to determine whether an individual or household was eligible for the free licence, Mr Whittingdale replied: "The commitment made in the Conservative manifesto that all households with an over 75-year-old will be eligible to a free TV licence will be honoured throughout this Parliament. | When asked if over 75s would be means-tested to determine whether an individual or household was eligible for the free licence, Mr Whittingdale replied: "The commitment made in the Conservative manifesto that all households with an over 75-year-old will be eligible to a free TV licence will be honoured throughout this Parliament. |
| "As requested by the BBC, they will take responsibility for this policy from thereon." | "As requested by the BBC, they will take responsibility for this policy from thereon." |
| Speaking on Radio 4, former BBC Trust chairman Diane Coyle said: "It's the second time the government has forced a deal on the BBC. There has been no consultation with the public and it's a major change in the BBC's responsibilities. The public who pay for the BBC should have been consulted." | |
| Mr Whittingdale added the government, depending on the Royal Charter agreement, expected the licence fee to rise in line with consumer price index (CPI) inflation over the next charter period. | |
| Ms Coyle said: "I don't think it will balance out in the long run. I welcome getting the inflation link back, but the number of people over 75 is going up all the time and it's not clear to me in the long time it can avoid service closures to cover it." |