Nearly 500,000 older people are missing out on a free TV licence, analysis for The i Paper has found.
Campaign groups urged over-75s who qualify for the means-tested concession but have yet to claim it, to immediately contact the BBC.
However a mass take-up of unclaimed free licences could blow an £83m hole in the BBC’s finances, a figure equivalent to the annual running costs of Radio 4.
The BBC said it encouraged anyone entitled to a free licence to claim one, despite the impact it would have on the broadcaster, which is already shedding jobs in a drive to make £200m of savings.
Since ending free licences for the over-75s in 2020, the BBC has agreed to subsidise licences for any household where there is a person over the age threshold who qualifies for pension credit.
The BBC said it paid for 765,000 free licences under the scheme, in 2024.
That figure is set to be boosted by an additional 22,000 over-75s who signed up for pension credit before Christmas, in order to qualify for the winter fuel allowance, following the Government’s decision to means-test the benefit.
However, analysis by data company Policy In Practice found there is a large pool of pensioners still missing out on a free licence.
There are 425,000 people over 75 whose income levels would qualify them for pension credit but have not applied for that concession.
In addition, there are around 50,000 people over 75 who are already claiming pension credit and could be claiming the free TV licences but aren’t, the body said.
The winter fuel payment is made automatically to people on pension credit but claimants have to apply for other concessions including a free licence. A £5 increase to the licence will apply from April, taking the cost to £174.50.
Winter fuel payment cut could cost the BBC millions for years to come
Read MoreDeven Ghelani, director of Policy in Practice, said: “There are almost half a million people over 75 missing out on the free TV licence, most of them because they aren’t claiming pension credit when they could.”
“People on pension credit have to firstly be aware that they are eligible for a free TV licence, and then they have to apply for one. Policy in Practice’s local authority partners have contacted the BBC about auto-enrolment, and we are hoping for a positive response.”
Dennis Reed, director of Silver Voices, the campaign group for pensioners, said the BBC should do more to ensure the over-75s get licences they are entitled to.
Reed said: “We want everyone to claim their free licence if they are entitled to it. But why can’t a free licence be automatically given to those on pension credit?”
Reed added: “The BBC should be doing its public duty in making sure everyone entitled to a free licence gets one. But there is no sign of it happening under current leadership.”
Silver Voices called on Whitehall to share information with the BBC about pension credit-claiming households to allow the introduction of an automatic enrolment scheme.
TV Licensing said it “routinely promotes the concessions and support available in the letters we send to customers, directly during calls to our customer service line, and as part of our communications campaigns and social media output”.
The body said it works with “organisations across the UK, including those representing the interests of older people, to improve the support and service we offer.”
A TV Licensing spokesperson, speaking on behalf of the BBC, said: “Anyone aged 75 and over who receives pension credit can apply for a free TV licence and we would urge anyone who has not yet applied to do so.”
The person added: “In 2023/24 around 775,000 free licences for over-75s were funded by the BBC and more information about the application process can be found on the TV Licensing website or via our customer service team.”
The BBC budgeted a cost of up to £250m a year for subsidised licence fees, in 2020. The take-up shortfall means the figure is currently less than £150m.
Continuing to pay free licence fees for all over-75s, previously funded by the Government, would cost the BBC £745m a year, the broadcaster calculated.
If a large number of people began claiming free licences, it would take another chunk out of the BBC’s annual income at a time when drama productions are being paused due to funding difficulties.
A further £83m bite out of the BBC’s income from an extensive take up of free licences would be equivalent to the cost spent on Radio 4’s programming, the BBC Three youth channel or its entire Children’s output.
The value of the licence fee has dropped by one third over the past decade and BBC News is closing 130 roles after the corporation said it needed to make further cuts of £200m.
However, extending means-testing of the licence will be considered when discussions over a new BBC Charter begin with ministers this year.
Former director-general Greg Dyke said the current flat-rate charge should be more progressive, with wealthier households paying more.
That could allow those on benefits and pensioners to pay a smaller fee or nothing at all. The BBC said it is open to discussing moves to reform the tax so it is “fairer”.
Tim Davie, the current director-general, said of a more progressive charge: “That doesn’t necessarily imply means testing, there could be a number of ways you could make it progressive. I just think the idea we’re just sitting where we’re at is the wrong one.”
Other proposals mooted include charging streaming subscribers an additional “digital tax”, even if they don’t watch BBC programming and introducing a subscription charge to access some additional BBC services.
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