Over 75s to lose their free TV licenses!

Lord Hall - BBC won't guarantee free TV licenses for over-75s

In his budget yesterday, the Chancellor announced the end of austerity. Yet there are billions of spending cuts already in the pipeline which were introduced by his predecessor, George Osborne. One of the cuts could see the over-75s, losing their free TV licenses.

Many older people may not realise that the BBC is preparing to scrap or restrict free television licences for people aged above 75 after publishing a study showing that pensioners are becoming richer. The BBC was forced to take on the free license scheme by the Tory government as part of its most recent funding deal.

More than 4.46 million homes with older residents receive a free television licence, saving them £150.50 a year.  The benefit was introduced in 2001 and costs £725 million, around one-fifth of the BBC's total budget.  Lord Tony Hall (£500,000 a-year) BBC boss, has said the BBC will not guarantee free TV licenses for the over-75s. The corporation is expected to put forward research in a matter of weeks on ways to reform the subsidy, with a view to introducing a new system by 2020.

Options are likely to include raising the age of eligibility, introducing means-testing to exclude wealthier pensioners, or removing the benefit from people above 75 who live with younger relatives.

The maximum fine for watching TV without a valid license is £1000 plus a criminal record. You can also be sent to prison. In 2012/13, 180,000 people were prosecuted for not paying the license fee which many would like to see scrapped. The BBC will take full responsibility for the cost in 2020.

It's likely in the foreseeable that we can see pensioners losing their winter fuel allowances and free bus passes in order that the government can fund tax cuts for the rich. We all know who has been paying for austerity and its not the fat-cat bankers or the wealthy.