Theresa May has urged the BBC to rethink its plan to scrap free TV licences for most over-75s, as it announced that three million pensioners would no longer be eligible for the concession.
The Prime Minister was “very disappointed” by the decision, a spokesperson said, after the BBC revealed eligibility for free licences will be means-tested from June next year, leaving them only available to those who qualify for pension credit.
Around 1.5 million of the 4.45 million households currently receiving free licences will be eligible.
The corporation said maintaining the universal scheme would cost £745 million a year and necessitate the closure of BBC Two, BBC Four, the BBC News channel, Radio 5 Live and BBC Scotland, plus local radio stations and other services. The new scheme will cost £250 million per year.
The announcement triggered a major clash with the government, which passed responsibility for the scheme on to the BBC as part of a deal negotiated four years ago.
The Prime Minister’s official spokesman said: “We are very disappointed with this decision. We have been clear that we expected the BBC to continue this concession.
“People across the country value television as a way to stay connected and we want the BBC to look again at ways to support older people.
“Taxpayers want to see the BBC using its substantial licence fee income in an appropriate way to ensure it delivers for UK audiences, which includes showing restraint on salaries for senior staff.”
Lord Hall, the director-general, said it had “not been an easy decision” but the outcome is the fairest one. Writing in Tuesday’s Telegraph, he said a public consultation on the issue was evenly split between those who wanted to keep the universal licences and those who wanted change “but what emerged across all the feedback was the overriding concern to protect those most in need – and to protect the BBC and what it offers”.
Age UK said many pensioners live in poverty but do not claim pension credit, either because they are unaware of it, are unable to navigate the complicated application process, or are simply too proud to accept benefits.
Caroline Abrahams, the charity’s director, said means-testing would leave vulnerable elderly people cut off from the world.
“Make no mistake, if this scheme goes ahead we are going to see sick and disabled people in their 80s and 90s who are completely dependent on their cherished TV for companionship and news, forced to give it up.
“Means-testing may sound fair but in reality it means at least 650,000 of our poorest pensioners facing a big new annual bill they simply can’t afford, because though eligible for pension credit they don’t actually get it,” she said.
“The BBC’s decision will cause those affected enormous anxiety and distress, and some anger too, but in the end this is the Government’s fault, not the BBC’s, and it is open to a new prime minister to intervene and save the day for some of the most vulnerable older people in our society who will otherwise suffer a big blow to their pockets and to their quality of life.”
A report commissioned by the BBC suggested that pensioners now enjoy “a marked improvement” in living standards since the scheme was brought in by the then chancellor Gordon Brown in 2000.
TV Licensing said all over-75s will receive a letter over the course of the next month explaining the new scheme, and a ‘Pay as you Go’ scheme will be set up next year offering fortnightly or monthly payment plans for pensioners whose free licences are being revoked.
