Government Response

The Government responded to this petition on Tuesday 14th January 2025

The BBC provides free TV licences for over-75s who are in receipt of pension credit. Charter Review will look at ensuring the BBC has a fair and sustainable funding model.

The BBC is a vital British asset and makes a huge contribution to lives up and down the country. It supports our democracy, brings our communities together, and helps to shape and define our nation through telling stories about the lives of people in all parts of the UK.

The BBC took on responsibility for over-75s concessionary licences as part of the 2015 licence fee settlement. The BBC now administers the concession, and offers free TV licences for over-75s who are in receipt of pension credit.

While the Government strongly believes in public funding for the BBC given the public good it serves, we are aware of the financial difficulties faced by some households, and are committed to supporting them to spread the cost of the TV licence. For this reason, the Government has announced a significant extension to the Simple Payment Plan (SPP). This will allow unlicensed households experiencing financial difficulty to split up the annual payment into more manageable fortnightly and monthly instalments. The BBC’s analysis suggests that the expansion could double the number of households using the SPP to around 500,000 by the end of 2027.

The forthcoming Charter Review is a key opportunity to set the BBC up for success long into the future. It will look at a range of issues and, as a priority for this Government, will start a national conversation to make sure the BBC truly represents and delivers for every person in this country.

As we address these vital issues about the future of the BBC, we must also ensure that there is a sustainable funding model that is fair for those who pay for it. The Government will be taking forward this issue as part of the Charter Review process, since what the BBC does and its future role is fundamentally influenced by how it is funded.

The Government is keeping an open mind about the future of the licence fee, and firmly believes that the unique obligations placed on the BBC demand continued, sustainable public funding to support its vital work.

We will work closely with the BBC, and engage with other broadcasters, stakeholders across the creative industries as well as the British public to inform our thinking. This will include the opportunity for stakeholders and audiences across the country to respond to the Charter Review public consultation before the new charter comes into effect in 2028.

Department for Culture, Media and Sport