DWP confirms households on one benefit get free TV licence | Personal Finance | Finance

BBC building in London

DWP confirms £0 TV Licences for households on one benefit (Image: Getty)

Three months ago, an extra £5.50 was added to household bills when annual TV licence fees shot up. Come next April 6, it’s set to rise again. The UK Government agreed that the TV licence fee would increase in line with inflation from April 1, 2024, for the remaining four years of the Charter period, which runs until the end of 2027, so households face yet another price hike in 2027.

Anyone who wants to watch or record programmes on TV, on a computer, or on another device needs a licence. This includes on-demand BBC programmes on BBC iPlayer as well as live events on streaming services.

However, through a single claim for a Department for Work and Pensions (DWP) benefit, state pensioners can obtain a free TV licence worth £180. According to the DWP, individuals aged 75 and older who have a low income can eliminate the cost of their BBC TV Licence by applying for Pension Credit.

Under current DWP regulations, pensioners who receive Pension Credit are eligible for a complimentary TV licence. This benefit, with an average annual value of £4,300, provides access to various forms of additional financial assistance, such as a free TV licence for those aged 75 or older. What’s more, the DWP claims it only takes 16 minutes to apply.

In control

According to the DWP, it only takes 16 minutes on average to apply for Pension Credit (Image: Getty)

After the Pension Credit rate increased by 4.8% in spring, the DWP said it’s now “worth an average of £4,300 a year, unlocking further support including help with housing costs, council tax and free television licences.”

It continued: “Between 2026 and 2027, the Government will provide a £6 billion boost to spending on State Pensions and pensioner benefits.”

The Department for Culture, Media and Sport said: “There are a number of TV licence concessions available, including for over-75s in receipt of Pension Credit. There is no BBC concession to provide free TV licences for all pensioners at this time.

TV Licence concessions are set out in legislation and are currently available to people who are registered blind or severely sight impaired, as well as to over-75s in receipt of Pension Credit, and people living in qualifying residential care who are disabled or over 60 years old”, reports Birmingham Live.

“The Government is committed to the current licence fee and its available concessions for the remainder of this Charter period, until the end of 2027.”

Piggy Bank and Stack of Coins

Pension Credit provides extra money to people of State Pension age (Image: Getty)

Addressing potential future changes, the DCMS said: “We are also keeping an open mind about new concessions and are considering a range of options to better account for different household situations.

“As set out in the Charter Review Green Paper, we do not plan to remove any existing concessions.

“We also do not plan to revisit the decision on over-75s licences as the BBC provides a concession for over-75s on Pension Credit, which targets those most in need of support.

“It was estimated that the cost of the TV licence concession for all over-75s could reach around £745 million per annum prior to its amendment in 2020.”

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