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Old 21-11-2018, 10:31   #1
OLD BOY
Rise above the players
 
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Funding of the BBC

This could be the last decade of the licence fee, and there is a real possibility that this could be replaced by a subscription system following the next review.

The main reason I believe this was not introduced this year was because it would be nigh on impossible to work out who had and had not paid a subscription for their radios, and of course those relying on just an aerial to receive their services would also present the same problem. Of course, at the same time it would not be possible to switch off the delivery of those services, even if you did not know who had not paid.

However, in the future, technology will be different. Both radio and TV will be delivered over the internet, although how quickly that will transpire and replace existing free to air broadcasting remains to be seen. Some academics are saying this will happen within 15 years, but this may underestimate the problems that will be encountered switching many people over from their outdated equipment. The issues for the elderly and the poor are particularly acute.

In the meantime, the first problem is to consider how we deal with free licences for the over-75s. The BBC is now consulting on this. My preferred option would be simply to stop issuing new free licences, but allow existing recipients to keep going for the remainder of their years. The problem with that is that it would cost the Beeb a bomb in the early years, affecting their ability to provide their existing range of programming (according to them).

My next preferred option would be to means test those who wish to apply or retain the existing benefit they receive. There are many people who are receiving the free licence who have no need of this benefit at the same time as phasing it out as above. But is there a simple way of means testing?

One way or another, these costs have to be reduced, so perhaps the easiest method is to phase it out over three years - down to 75% in the first year, 50% in the second, 25% in the third, followed by no subsidy. At the same time, the BBC could ensure that no new arrangements for this group would be payable until aged 80.

It's a difficult one, and the BBC is consulting on the best arrangement that should be explored. What do you think?

https://www.a516digital.com/2018/11/...future-of.html
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