Kristen Zanoni  |  August 3, 2020

Category: Household

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Older couple watching TV - tv licences

TV licences have been universally free for those over 75, but a controversial new change in pricing is launching this month.

Starting 1 August, free TV licences began being phased out, causing millions of people over age 75 to be charged £157.50 a year, the BBC reported.

There will be payment plans available and no action is required until TV Licensing contacts you. 

Originally, the plan was to begin 1 June, but the coronavirus pandemic deferred the administration of license fees. According to the BBC, postponing the licence fees cost £35 million a month. 

The TV licence fee will cost the older population £157.50 a year, and the sum can be paid all at once or in instalments, according to the Guardian.

If customers choose to pay instalments, they can be paid weekly, fortnightly or monthly, depending on preference. Choosing to pay instalments will not add any extra fees.

Weekly payments will start at £3.06, then continue weekly at £2.97 each week.

Fortnightly and monthly instalments will also include one higher first payment and continue with consistent payments thereafter. Choosing to pay fortnightly will cost £5.83, or monthly payments for £13.12 each.

Beginning this month, TV Licensing will send out notices to the 75 and older population informing them of the new license fees.

The letter will alert customers what action they need to take and will give customers time to arrange payment plans if they wish to. Customers will also be given the chance to apply for free TV licences if they are qualified. 

The BBC reports that supplying free TV licences to customers 75 and older could cost up to £1 billion a year.

Vintage TV sets showing colored bars - tv licences

The decision to implement fees for TV licences has been difficult, but the BBC is under serious financial distress and deferring the licence fees any longer would have affected the broadcaster’s programmes, BBC chairman Sir David Clementi said.

The pressures of the coronavirus pandemic have also delayed the fee-charging process, creating more financial stress. 

The U.K. government has granted free TV licences to those 75 and older since the year 2000, but the financial responsibility has since been put on the BBC after the last licence fee settlement. 

A charity for elders called Age UK has taken to Twitter to announce its displeasure with BBC’s decision to end free TV licences. On 9 July, charity Age UK tweeted that it was “bitterly disappointed” in the decision and noted it as “a kick in the teeth for millions of over-75s who have had a torrid time during this crisis.”

The plan to end free TV licences was in the works in 2019, and Age UK launched a petition to voice the many disappointed opinions against the plan. Over 630,000 people signed the petition to keep free TV licences. 

There is good news, as some customers 75 and older can still get free TV licences, according to the Guardian. Those who are classified as low income and receive pension credits are eligible.

There are also other exceptions. 

Anyone over the age of 75 who resides in a care home could be eligible for free TV licensing under the accommodation for residential care (ARC) licence. The ARC license permits eligibility for a free TV license without proof of pension credit. Some care homes also have licences that cover residents. 

The visually impaired or blind will receive 50% off the TV licences. If you have partial vision, no discount is applied.

BBC radio-only listeners do no have to purchase a licence. 

There are also many streaming services such as Netflix that enable the elderly to watch TV without having to pay for a licence. 

If you are not eligible for a free TV licence, payments can be paid online at tvlicensing.co.uk or by calling the payment line at 0300 555 0298.

Do you agree with the decision to end free TV licences? Let us know in the comments.

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