Axing free TV licences for over-75s could slap UK with £1.6bn benefits bill

THE decision to scrap free TV licences for over-75s could end up adding up to 1.6billion to the benefits bill, it was revealed.

BBC’s controversial move means that only Brits who claim pension credit can get the freebie.

But the Office for Budget Responsibility warned the looming cut could spark a stampede of pensioners who have so far not claimed the benefit to get it.

This could send the welfare bill soaring as currently there is a whopping £1.6bn a year of unclaimed pension benefit.

This would be far more than the £745million a year saving the Government made by handing responsibility for the benefit top the Beeb.

OBR chairman Robert Chote said it “illustrates the dangers of unintended consequences when governments come up with clever ways to save money”.

The OBR report states: “It is relatively unusual for a government to delegate parameters of welfare policy to a broadcasting company in an attempt to save money, and it is perhaps not surprising that this may have unintended consequences.

“The BBC’s decision to means-test free TV licences via a link to pension credit receipt may well raise welfare spending by more than it reduces BBC spending, particularly once the BBC spends the money it saves by means testing.

“The net effect on the public finances would therefore be to push the budget deficit up not down.”

The OBR warned that it is very hard to guess how many pensioners will be spurred to claim the benefit in order to watch free telly.

They said that if 250,000 of the 470,000 Brits who are currently entitled to pension credit but not claiming it start to, this would cost £850m.

Theresa May’s spokesman said: “We have always been clear that we want anybody who is entitled to pension credit to claim it.”

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