Frontier Economics report for the BBC on over-75s TV licence concession

Date: 01.11.2018     Last updated: 01.11.2018 at 11.02
The BBC commissioned Frontier Economics to explore longer-term funding options relating to the over-75s TV licence concession, and asked Frontier to prepare a report that addresses the following questions:
  • What are the implications of reinstating the existing concession, and what are the key features of a case for reforming the concession?
  • Are there particular options for reform which Frontier Economics recommends that the BBC should be thinking further about?

In considering these key questions, Frontier were asked in particular to consider the following four criteria:

  • Financial Impact (including effect on BBC finances and the money available to provide high-quality programming and services)
  • Distributional Impact (effect on different groups)
  • Feasibility (including implementation issues, financial and compliance costs, and how easily any issues could be overcome)
  • Economic Rationale (economic case for any course)

They were also asked to consider the possibility of voluntary payments, as permitted under Clause 49 of the BBC Agreement, and the possibility of a concession for over-65s as allowed for by the Digital Economy Act 2017.

Frontier’s report has been published today and can be found here:

 

Frontier Economics' discussion paper on the changing landscape around intergenerational fairness was published in October 2018.

A public consultation on the future of the concession, setting out a range of options will be launched in the near future.

A BBC spokesperson said: “We are grateful to Frontier Economics for their full report. It is clearly the result of careful study and analysis. It will help inform the BBC’s consultation on the future of the over 75s concession once government stops funding it in 2020. There are important issues to consider and we will do nothing without consulting with the public. We will be setting out a range of options in our consultation paper. Everyone who wants to contribute will be able to do so once the consultation is published.”

Press queries for Frontier Economics: Tamsin Porter - 0207 031 7000 - media@frontier-economics.com