Scrapping free TV licences for over-75s could leave pensioners struggling to pay bills

Age UK says the £154.50 licence fee is the equivalent of three monthly energy bills

The decision to scrap free TV licences for the over-75s could leave hundreds of thousands of pensioners struggling to pay their bills, Age UK has warned.

The TV licence for those aged over-75 will be means-tested from June, leaving 3.7 million pensioners having to pay £154.50.

Age UK says the cost of a TV licence is equivalent to more than three monthly energy bills or more than five monthly water bills for over-75s.

Official figures show that over-75s households are already spending an average of £46 per month on electricity, £43 on gas and £28 on water.

The charity is warning that having to find the extra money each month will be a shock to the budgets of many older people across the UK who already have problems paying their utility bills. 

Why are free TV licences being scrapped?

After the Conservative government shifted the cost of the licence fee for over-75s to the BBC, the corporation was left with the choice of either scrapping the concession for the elderly or cutting broadcasting services.

The cost of funding the TV licence for people aged over 75 is £745 million a year.

The BBC says that to renew the scheme would cost around a fifth of its budget - the equivalent to what it spends on BBC Two, BBC Three, BBC Four, the BBC News Channel, CBBC and CBeebies.

A bridge too far

Age UK says those on low incomes, battling loneliness, ill health and disabilities will be hardest hit if the decision to remove the licence fee concession remains in place.

It says that the decision could exclude some of the very poorest and oldest pensioners from watching TV.

Caroline Abrahams, Age UK’s charity director, says: “All the evidence is that if the BBC’s plan goes ahead, hundreds of thousands of over-75s will struggle to pay for their TV licence.

“As winter bites this week we know that many pensioners are worried about their heating bills and cutting back spending on other essentials, including food, to save money wherever they possibly can.

“The last thing older people in this situation need is to be hit in the pocket again in a few months’ time and every year thereafter because they have to find the money for a TV licence too. They are already shelling out a lot on their utilities and for some an extra £150 plus a year will be a bridge too far.”

Are you still eligible for a free TV licence?

Around 1.5 million households that include someone over 75 claiming pension credit could still be eligible for a free licence.

However, Age UK estimates that two in five of all those eligible don’t claim pension credit, often because they don’t realise they are eligible.

In order to claim pension credit your weekly income must be less than £167.25 if you’re single, or £255.25 if you are a couple.

The quickest way to apply for pension credit is to call the pension service on 0800 991234. Alternatively, you can check your eligibility online on the government website here: https://www.gov.uk/pension-credit