From 2020, only 1.5 million households where an elderly viewer is receiving Pension Credit will qualify to get the £150.50 licence free of charge. Yesterday Tony Hall the BBC director-general, said the measure will save the corporation almost £500million. But it was greeted by protests from pensioner groups and Prime Minister Theresa May, who said she was “very disappointed”. The Daily Express is backing calls to reinstate the benefit and has launched a Keep Free TV Licences For Over-75s crusade. Tory leadership contenders last night rushed to back the Daily Express crusade.

Environment Secretary Michael Gove said: “I wholeheartedly support the Daily Express’s brilliant campaign to save free TV licences for the over-75s. This is a much-valued service for older people and we must protect it.”

Former Work and Pensions Secretary Esther McVey also accused the BBC of “breaking their promise” when it came to free TV licences for older people.

“The BBC was told that it could increase the licence fee if it covered free TV licences for over-75s,” she said. “It now seems to have broken the terms of that deal and millions of pensioners will have to pay. My aim is to make sure that the BBC do not benefit financially from breaking their promise and I want to do everything we can to ensure all over-75s get the free TV licences they deserve.”

George McNamara, the director of policy and influencing at Independent Age, said the news would come as “a massive kick in the teeth for millions of older people up and down the country”.

He added: “It’s a great shame the BBC has ignored the overwhelming case for keeping free TV licences for all over-75s.

“By linking the free TV licence to Pension Credit, this will further isolate the poorest pensioners.”

Martin Lewis, the founder of Moneysavingexpert.Com, called on the BBC to launch a campaign to raise pensioner awareness of their entitlement to Pension Credit.

According to the Government’s own figures, two in five pensioners are entitled to receive it but do not.

Mr Lewis said: “Pension Credit is one of the worse-claimed benefits. I’ve spoken many times, including on the BBC, about poor take-up rates that mean vulnerable older people miss out. Now they’ll lose their free TV licence too.

“I hope the BBC will launch a campaign to push the take-up of the benefit to coincide with this.”

Jan Shortt, the general secretary of the National Pensioners Convention, said the decision to stop handing out free TV licences to everyone over 75 was a “calculated, cynical move”.

She added: “Pensioner poverty is increasing, loneliness is reaching crisis level and the BBC has the bare-faced cheek to call this fair? It’s an absolute disgrace.”

Caroline Abrahams [-]

Picking up the bill for the free licences had been estimated to cost the BBC £725million in the coming years.

The likely bill for licences for people who receive Pension Credit is put at around £250million.

Caroline Abrahams, Age UK’s charity director, said the decision would cause “enormous anxiety and distress” to those affected.

She added: “In the end, this is the Government’s fault, not the BBC’s, and it is open to a new prime minister to intervene and save the day.”

The corporation’s director-general, Tony Hall, defended the move, while Sir David Clementi, BBC chairman, claimed the move was “the fairest and best outcome.”

The Intergenerational Foundation, which aims to improve intergenerational fairness, also backed the decision, which it said takes free licences away from those who can afford to pay.

A statement said: “The free TV licence was originally introduced to combat pensioner poverty, which has halved in the last 30 years to 15 percent.

“There is simply no reason why retired judges, lawyers, bankers and doctors should receive a free TV licence when younger generations are struggling financially.”

Over-75s who currently receive a free TV licence will be supported through the changes, TV Licensing has said.

Everyone with a free licence at the moment will be fully covered by it until May 31, 2020.

Wealthy broadcaster is happy to splash the cash on celebs, but not its viewers

BBC chiefs have long been accused of wasting huge sums of cash on certain presenters, new sets and travel.

Stars such as Gary Lineker and Chris Evans – before the latter moved back to Virgin – have commanded huge, eyewatering salaries.

Accounts last year revealed that Lineker, who fronts the BBC’s football coverage, is paid around £1.75million a year, while former Radio 2 presenter Evans raked in £2.2million, which was later cut to £1.66million after he quit BBC2 show Top Gear.

Tony Hall, the BBC director-general, claimed the corporation had no choice but to pay Lineker accordingly to retain him.

But the former footballer was far from the only “talent” being paid huge sums of licence fee-payers’ cash.

The BBC’s third-best paid star was Graham Norton, in the £600,000 to £610,000 bracket, while newsreader Huw Edwards took home between £520,000 and £530,000.

The corporation was also heavily criticised after it emerged that a project to expand the EastEnders set would cost £27million more than planned.

The new set, which will be HD-ready, was originally due to open in 2018 but will now not be finished until 2023.

The BBC admitted there had been “challenges on the way”.

But there have also been other examples of overspending – particularly on travel.

Despite the publicly funded broadcaster pledging to cut costs, it recently emerged that BBC chiefs have put aside almost a quarter of a billion pounds for taxis and hotel rooms needed over the next seven years.

Last year, it was revealed that the BBC also spent £200,000 of licence fee-payers’ money on taxis, trains, and hotel bookings which were later cancelled and left unused.

The cost of the 3,500 train tickets alone came to a whopping £172,000.

A BBC spokesman said: “A significant amount of travel is inevitable. Plans often change at short notice.”

But John O’Connell, of the TaxPayers’ Alliance, said the broadcaster needs to “work harder to lower this waste of people’s hard-earned cash”.

The BBC was also criticised in 2017 when it emerged that it had spent more than £6million of taxpayers’ money on letters threatening to fine people who had not paid the licence fee.

The corporation sent out almost 28.6 million letters, costing 22p each, to every unlicensed home.

The letters claimed the recipients would be fined £1,000 if the licence fee went unpaid.

Comment by Tony Hall

I know that readers of the Daily Express have been following the debate on the future of free TV licences very closely.

We have had an extensive consultation and I’m sure many readers will have responded and given us their views.

It has not been an easy decision. But in making it we have tried to put fairness at its heart.

I know that for some the licence fee is a lot of money.

But I think we have come to the fairest judgement after weighing up all the arguments.

It wouldn’t be fair simply to abolish all free licences as that would hit the poorest pensioners the hardest.

Equally it wouldn’t be fair to maintain it forever if the BBC had to pay the costs, given the profound impact that would have on our services which I know many readers love.

So this decision protects those pensioners who need support the most.

Around 1.5 million households could get free TV licences if someone is over 75 and receives Pension Credit.

And importantly, it is not the BBC making the judgement about where need begins and ends – the Government sets and controls that measure.

It is fair for all audiences – of all generations, both old and young – who we know value the BBC and the programmes and services we provide which can now continue and thrive. It’s absolutely clear that TV is a vital source of companionship.

We absolutely agree with those that have argued that we need to protect the poorest people who are over 75. That is why they won’t have to pay.

Many people have also argued that the Government should continue to foot the bill. That’s ultimately for the Government.

But as things stand, the law requires the BBC to make a decision, not them.

I think we’ve taken the fairest decision that is within our power to make.

• Lord Hall has been Director-General of the BBC since April 2013.

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