Theresa May has said she is ‘very disappointed’ with the decision to means test the licence fee for the elderly and has urged the BBC to look again, Downing Street has said.

The BBC had previously planned to provide the funding to maintain free licence fees for all over 75’s in 2020.

However, following a review, the free licence fees for the elderly will now be restricted to those receiving pension credit.

Only around 1.2 million households will now be eligible for the free TV licence, with around 3.7 million pensioners expected to lose out.

As part of the BBC’s charter agreement which began in 2017, the corporation will take on the responsibility of paying for the free licence fees by June 2020.

Following a review by the broadcaster, only households with someone aged over 75 in receipt of pension credit will be eligible for a funded licence from next summer.

The proposal has prompted sharp criticism of the BBC.

Mrs May’s official spokesman said: ‘We are very disappointed with this decision.

‘We have been clear that we expected the BBC to continue this concession. We want the BBC to look again at ways of supporting older people.’

‘As part of the long-term funding agreement, the BBC agreed to take on responsibility for this concession in 2020 and we have been clear that we expected the BBC to continue this concession.

‘In 2017/18, it received over £3.8 billion in licence fee income, more than the year before, and we have guaranteed the licence fee will increase with inflation until 2022.

‘They are also making over £1 billion a year from commercial work, such as selling content abroad, which can be reinvested.

‘It is the BBC’s responsibility to ensure its substantial licence fee income is used in an appropriate way so that it can deliver for UK audiences.’

The government has also been criticised for forcing the BBC to absorb the financial burden despite being unable to cope with the added cost.

Deputy leader of the Labour party Tom Watson said: ‘It is an outrage that this Government is overseeing the scrapping of free TV licences for three million older people, leaving a Tory manifesto promise in tatters.

‘I challenge all Tory leadership candidates to honour the commitment they made in 2017. You cannot means test for social isolation.

‘You cannot means test for loneliness. Millions of elderly and isolated people will lose because of this announcement.’

The plan has also sparked fears of increasing isolation among lonely elderly and vulnerable people.

Age UK’s charity director Caroline Abrahams said: ‘Make no mistake, if this scheme goes ahead we are going to see sick and disabled people in their eighties and nineties who are completely dependent on their cherished TV for companionship and news, forced to give it up.

‘The BBC’s decision will cause those affected enormous anxiety and distress, and some anger too, but in the end this is the Government’s fault, not the BBC’s.’

Depending on the take-up of the scheme, the proposals will cost the BBC around £250 million by 2021/22 depending on the take-up of the new scheme.

The broadcaster has said that to absorb the cost of all the free licences would result in ‘unprecedented closures’.

This would include closures of BBC Two, BBC Four, the BBC News Channel, the BBC Scotland channel, Radio 5live, and a number of local radio stations, in addition to other cuts and reductions.

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