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BBC to fund over-75s' TV licences BBC to fund over-75s' TV licences
(35 minutes later)
The BBC is to cover the cost of providing free television licences for over-75s, the government has confirmed.The BBC is to cover the cost of providing free television licences for over-75s, the government has confirmed.
Culture Secretary John Whittingdale told MPs the changes would be phased in from 2018-19 with the corporation bearing the full cost by 2020-21.Culture Secretary John Whittingdale told MPs the changes would be phased in from 2018-19 with the corporation bearing the full cost by 2020-21.
He said, in return, the government will bring forward new rules on paying to use catch-up services like iPlayer.He said, in return, the government will bring forward new rules on paying to use catch-up services like iPlayer.
Shadow culture secretary Chris Bryant called the announcement "an utter shambles".Shadow culture secretary Chris Bryant called the announcement "an utter shambles".
Key points
Mr Bryant questioned government policies being "briefed to the media" after the plans were revealed in a Sunday newspaper.Mr Bryant questioned government policies being "briefed to the media" after the plans were revealed in a Sunday newspaper.
The current BBC charter is due for renewal at the end of 2016.The current BBC charter is due for renewal at the end of 2016.
In an angry exchange, Mr Bryant stressed the process must be "open and transparent", adding it was "no way to run a whelk stall let alone the world's most respected broadcaster".In an angry exchange, Mr Bryant stressed the process must be "open and transparent", adding it was "no way to run a whelk stall let alone the world's most respected broadcaster".
Mr Whittingdale said he was "surprised" Mr Bryant "was so hostile when I have answered his question", adding the BBC was satisfied with the agreement. Mr Whittingdale said he was "surprised" Mr Bryant "was so hostile when I have answered his question", adding the BBC was satisfied with the agreement which, it has been reported will cost the £650m, or one-fifth of its annual budget.
'Modernise licence fee'
He said the charter renewal process would ensure the BBC could "adapt to a changing media landscape".He said the charter renewal process would ensure the BBC could "adapt to a changing media landscape".
He said he was pleased "the BBC had agreed to play its part" in helping tackle the government's "challenging fiscal position". 'Modernise licence fee'
Mr Whittingdale also confirmed plans to bring forward legislation to modernise the licence fee next year and said the government would consider decriminalising non-payment of the licence fee. He said he was pleased "the BBC had agreed to play its part" in helping tackle the government's "challenging fiscal position" while further reducing its "reliance on taxpayers"
He added the government expected the licence fee to rise in line with consumer price index (CPI)inflation over the next charter period. Mr Whittingdale also confirmed plans to bring forward legislation to modernise the licence fee next year "to cover public service broadcast catch-up TV".
He added the government would "carefully consider" decriminalising non-payment of the licence fee.
When asked if over 75s would be means-tested to determine whether an individual or household was eligible for the free licence, Mr Whittingdale replied: "The commitment made in the Conservative manifesto that all households with an over 75-year-old will be eligible to a free TV licence will be honoured throughout this Parliament.
"As requested by the BBC, they will take responsibility for this policy from thereon."
He added the government, depending on the Royal Charter agreement, expected the licence fee to rise in line with consumer price index (CPI) inflation over the next charter period.