Thursday 21 November 2019
The BBC will be able to fulfil commitments it made in 2016, when agreeing to take responsibility for setting and funding the over-75 TV licence scheme from June 2020, if the States agrees to extend relevant parts of the UK's Communications Act 2003.
The Policy & Resources Committee has today submitted a policy letter seeking States' approval to extend certain provisions of the Communications Act 2003, as amended by the UK's Digital Economy Act 2017, to give the BBC the necessary power to set the policy for the provision of any age-related concessionary TV licences within the Bailiwick.
As a result of the UK Government's decision in 2015 to transfer responsibility to the BBC for both setting and funding the UK's over-75 age TV licence concession scheme from June 2020, the States of Guernsey made similar arrangements with the BBC in December 2016.
The States Assembly had earlier resolved, in October 2015, to close its own over-75 TV licence scheme to new entrants. It was closed to new entrants from 1st September 2016. As part of the future policy and funding arrangements with the BBC, transitional provisions were agreed to share the cost of funding the scheme between the States of Guernsey and the BBC during 2018 and 2019, prior to the BBC taking full responsibility for setting and funding the over-75 scheme from 1st June 2020.
In June 2019, the BBC announced its decision on the future of the over-75 scheme for UK residents. From June 2020, the free licences for all will cease but a free TV licence will be issued to any household with someone aged over 75 who receives UK's Pension Credit. The BBC's decision does not automatically extend to the Bailiwick and therefore the broadcaster must make a separate decision regarding any future concession scheme for Bailiwick residents.
Deputy Gavin St. Pier, President of the Policy & Resources Committee, said:
'Preliminary discussions have been held with the BBC, which has signalled its continued commitment to the principle of equal treatment for all British licence fee payers (including island residents). Guernsey and Alderney do not have a benefit which is directly equivalent to the UK's Pension Credit benefit. The BBC would need to consider this as part of its decision-making on any future concession scheme to apply in the islands. The broadcaster has indicated that it will not make a decision about the over-75 concession scheme for Bailiwick residents for the period from 1st June 2020 until it has the necessary legal authority to do so, which is why we are seeking States approval to extend the relevant parts of the UK's Communication Act 2003.'
Separate to the over 75-age scheme, the States of Deliberation agreed in October 2015 to continue funding a scheme whereby Guernsey and Alderney residents of pensionable age (currently 65) who are in receipt of income support receive a free TV licence. The then Social Security Department stated in its policy letter that the withdrawal of the universal over-75 concession scheme would be most keenly felt by low income households, so the retention of a means-tested scheme for those above pensionable age would help those most in need.
The Committee for Employment & Social Security has confirmed it has no plans to alter the separate scheme for those above pensionable age on income support, which currently costs about £18,000 per annum.
Given the operation of this separate scheme, it is expected that the cost of providing free TV licences for residents over 75 years of age in Guernsey and Alderney who receive income support would fall to that Committee in the absence of any future BBC funding.
