BBC is set to grant SECOND reprieve to pensioners by delaying the scrapping of free TV licences for over-75s until October
- The decision on the licences will be discussed at a board meeting next month
- The delay would create a further £80million hole in the broadcaster’s finances
- Incoming director-general Tim Davie is said to not been keen on the new fee
- Here’s how to help people impacted by Covid-19
The BBC is set to grant a second reprieve to pensioners by delaying the scrapping of free TV licences for over-75s until October.
The decision will be discussed at a board meeting next month and would create a further £80million hole in the public service broadcaster’s finances.
Millions of older people received letters this year telling them they would have to start paying the £157.50 fee from June 1.
This was delayed however until August due to the coronavirus pandemic. When the changes come in only about 1million over-75s who receive pension credit will be entitled to a free licence.
The BBC is set to grant a second reprieve to pensioners by delaying the scrapping of free TV licences for over-75s until October
A Whitehall insider told The Times: ‘They’ve said August, but we’ve been told from the top of the BBC that they’re going to extend that to October.
‘They say they won’t go any later than that — that’s the crux point and the government won’t intervene on that. It also won’t bail them out.’
If the change is delayed until August this year the new director-general Tim Davie, 53, will then be in charge. He is taking over from Lord Hall in September.
It has been reported that Davie is not keen on the introduction of the charge and rumours have circulated that he might cancel it completely.
In an internal message to staff, director-general Lord Hall (pictured) said delaying means-testing of the free TV licence for over-75s would cost a ‘significant sum at a time when revenue from the licence fee is also down’ because of the broadcaster’s ability to collect the fee during lockdown
‘It would look good for the new DG (director-general) to review the decision and protect the over-75s,’ Claire Enders, founder of the media research company Enders Analysis, told the publication.
‘To my mind, and I think Tim Davie agrees with this, (charging pensioners now) is a very dangerous decision.
It comes as the BBC has invited staff to apply for voluntary redundancy as it attempts to make £125million in savings this year due to the coronavirus pandemic.
Tim Davie (pictured) is set to replace Lord Hall as the broadcaster’s next director-general
The broadcaster has asked its public service staff – not those in its commercial subsidiaries – to make a voluntary redundancy expression of interest.
It is feared that thousands of jobs may go as the corporation looks to make the saving after the pandemic blew a huge hole in its budget.
The BBC has 19,231 staff working in these broadcasting roles, its most recent annual report says, and they now have a six-week consultation period for redundancies.
Director General Lord Hall said in an internal message to staff that delaying means-testing of the free TV licence for over-75s would be costly.
He said it would be a ‘significant sum at a time when revenue from the licence fee is also down’ because of the broadcaster’s ability to collect the fee during lockdown.
The delay to the introduction of means-testing costs the BBC about £40m every month.
Caroline Abrahams, charity director for Age UK, welcomed the likely delay and said it would be ‘almost impossible’ to bring it in at this time.