Not surprisingly, opinion polls show that the licence fee is much less popular than the BBC as an institution; but alternative funding models are offering less and less public support. According to TV Licensing, the income collection process begins with the fact that it writes to homes classified as unauthorized. “If no response is received from an address, the tone of the letters gradually becomes stronger to encourage a response. A stronger message is sometimes needed for people to meet their legal obligations. The address is also indicated for a visit by an investigator to inquire about licensing requirements. The maximum penalty for the non-television licence is a $1,000 fine. There is no prison sentence for the offence, but a person may be incarcerated by the court for non-payment of the court fine. The agreement we have with the group means that it will cover the considerable cost of TV licences for the over-75s, which will ease some of the pressure on taxpayers to meet the country`s social record, while ensuring that our promise to maintain pension benefits is fully delivered over the next five years. At the time of the last agreement in 2010, the licence fee was used to finance public objectives such as broadband deployment and local television, which led to questions about the adequacy of the “top-slicing” of the licence fee for other purposes. We can expect a lively debate about the future of a much-loved institution.
I welcome the commitment made by the BBC to obtain this funding agreement, which is an important issue for its own future. I look forward to debating all of the issues during the Charter reference period and will make an announcement on the review process when the time comes. The government has secured an agreement with the BBC to cover the cost of free tv licences for over 75s We have guaranteed the right deal for the BBC in difficult economic circumstances for the country. This agreement guarantees the long-term funding of a strong BBC for the next period of the Charter. This means the obligation to increase the levy in line with inflation, subject to Charter review, the end of the iPlayer loophole and the end of broadband closure. Under these conditions, the BBC has agreed to cover the costs of free royalties for the over-75s and will take over the policy after the next Parliament. This explains why the licence fee has long been considered the “least bad” means of funding for the BBC. However, the amount to which the licence fee is set – and therefore the amount of funds available to the BBC – is being negotiated.
The current agreement expires in 2022 and there must be a new agreement between the government and the BBC for the next five years. Many would say that this prestige is due to its unique structure, the fact that it is largely independent of the state and is financed by those who watch television, the royalty payers. But changing visual habits also poses challenges to the collection of the levy. The government`s commitment that all households over the age of 75 will be entitled to a free-to-air television licence is respected in this Parliament. According to the latest figures, the UK has 25,752,560 television licences, a slight decrease from the previous year, although the population continues to grow. The six-year freeze on the licence fee is expected to end in April 2017, and debate on the appropriate level of BBC funding and hence the size and scope of the Corporation should be part of the Charter negotiations. Failure to pay the TV licence by someone watching live TV or using the BBC iPlayer catch-up service is punishable.