HANSARD
BBC Licence Fee Non-Payment (Decriminalisation for Over-75s) Bill
- Second Reading
- Debate resumed.
- Question (21 October 2022) again proposed, That the Bill be now read a Second time.
- Given that the hon. Member for Christchurch (Sir Christopher Chope), who is promoting the Bill, has already spoken, I explain for the sake of clarity that I am not going to call him to speak again. But I will call the Minister.
- 11:57 am
- I come to this debate slightly late, as I am actually responding to a debate that took place almost a year ago to the day. In that debate, my hon. Friend the Member for Christchurch (Sir Christopher Chope) made his points powerfully but succinctly: he had just 16 minutes to speak. The Minister at the time, my hon. Friend the Member for Folkestone and Hythe (Damian Collins), had one minute to respond. I will therefore set the context of the debate and answer a number of the points I suspect my hon. Friend the Member for Christchurch would have made if he had had longer when he moved the Second Reading of his Bill.Just over 100 years ago, on 18 October 1922, the BBC came into being as the British Broadcasting Company. It was an arrangement between the Post Office and a group of radio set manufacturers to provide radio content and promote the sale of wireless sets. It was funded through a 10 shilling licence fee. In 1927, the BBC received its first royal charter, becoming the British Broadcasting Corporation, with a mission to inform, educate and entertain. Since then, the BBC has continued to evolve and to play a hugely important role in British life, as it has touched the lives of almost everyone in the UK and made a unique contribution to our cultural heritage.In December 1932, the BBC launched its Empire Service. Days later, the service broadcast the first Christmas day message by a British monarch when King George V addressed the empire live from Sandringham. In 1940, Winston Churchill delivered his first radio broadcast as Prime Minister. In 1946, the first combined radio and TV licence fee was introduced, at a cost of £2, which then became the TV licence in 1971.In 1985, Live Aid was broadcast to an estimated 400 million viewers, and in 2007, iPlayer pioneered a whole new way to watch BBC content on demand via the internet. A year later, that was followed by BBC Sounds, which is a streaming media and audio download service hosting a range of content including live radio broadcasts, audio on demand and podcasts. As was noted in the brief debate we had a year ago by the right hon. Member for Warley (John Spellar), last year the BBC’s coverage of the funeral of Her late Majesty the Queen was watched by 22.4 million people across BBC channels at peak viewing time.
- If the BBC is as wonderful and magnificent as my right hon. Friend is telling us, and it provides such wonderful value for money, as the BBC keeps telling us, why does it need the criminal law to force people to pay for it?
- If my hon. Friend will forgive me, that is a point I intend to address in some substance a little later on. He makes an argument that many have made, and I understand it. The quality of the content of the BBC is considerable, although I—like everybody in this House, I suspect—occasionally have reason to question it. It is, in my view, still the finest broadcaster in the world, but that is a separate issue from the question of how we pay for it, which is the issue at stake in the Bill.
- Does the Minister recall that in 2014, while serving on the Committee considering the Deregulation Bill, I managed to insert a new clause that would have led to the decriminalisation of non-payment of the TV licence? Does he also recall that during charter renewal, the then Chancellor, George Osborne, negotiated away decriminalisation in return for the BBC taking on the payment of the concessional over-75 TV licences?
- I recall it very well because I was the Secretary of State at the time, so I was quite involved in that particular negotiation.To return to the point of the licence fee, the licence fee pays for, overwhelmingly, the BBC’s non-commercial activities. It raises something like £3.74 billion in public funding every year, with which the BBC has to deliver its mission and public purposes. A television licence is required to watch, record or receive television as it is broadcast live on any channel or online service.In a subsequent licence fee settlement, which was in my second incarnation, it was set to be frozen for two years and then to be uprated in line with inflation. The original charter agreement reached a settlement with the BBC where it was agreed that a licence should be required to watch not just live transmission of linear television services but live or on-demand content on BBC iPlayer, meaning that the so-called iPlayer loophole was closed.
- As the Minister was then Secretary of State, he will recall that the BBC wanted people to need a licence to watch all other media online, including the Sky player, the ITV player and the Channel 4 player. Does he remember that we had to defeat that?
- It has always been the case that the licence fee is required to watch live TV. It does not extend to the other things, however much some people might suggest it should. That has led to an issue that I will go on to talk about: the challenge to the existing model as people change the way they consume television.It is worth noting that the licence fee is not just used to fund the BBC. It is also used for other strategic public service objectives, including the funding of the Welsh language broadcaster S4C. I spent yesterday in Cardiff, where I was able to visit S4C; I visited the set of “Pobol y Cwm”, for any Welsh speakers in the Chamber today. I can vouch that S4C does an important job in sustaining the Welsh language and is thoroughly deserving of public funding through the licence fee, which is why the Government agreed in the last licence fee settlement to a significant increase in that funding.The licence fee represents a significant intervention in the broadcasting market, providing a predictable and steady source of revenue for the BBC. The Government are currently committed to maintaining the licence fee funding model for the duration of this 11-year charter period, which runs until 2027. But as I have already suggested—I will come on to this point at greater length—the BBC funding model is facing major challenges, and it is necessary to look at ways to ensure that it remains sustainable in the longer term.The licence fee does not represent the only intervention by the Government in the broadcasting sector. There are a number of other ways in which we support a dynamic and successful broadcasting sector and, in particular, public service broadcasting. We have six public service broadcasters: the BBC, ITV, STV, Channel 4, S4C and Channel Five. Only two of those—the BBC and S4C—receive direct public funding from the licence fee. All six broadcasters benefit from regulatory advantages such as prominence and guaranteed access to spectrum. With these benefits come obligations with respect to the content that they show and how it is made.
- The Minister will probably recall that I have tabled a number of written questions on enforcement action taken by the BBC, and it seems that no enforcement action has been taken against the over-75s. The Minister says in his responses that any enforcement action should be undertaken with the utmost sensitivity. I can show him letters that my constituents get from the BBC that do not show the utmost sensitivity. Another conversation needs to be had about how this has all been handled.
- The hon. Gentleman is right on both points. He is right that enforcement action has largely not been taken by the BBC against over-75s who have not acquired a television licence—certainly no prosecutions have yet followed. He is also right to cite our stricture to the BBC that it should approach this matter with sensitivity. Like him, “sensitivity” is not the first word I would choose to describe the general tone of communications about TV licence fee collection.
- This is no defence. We deal with the actual law here; we do not deal with what might or might not happen. Under the law, an 80-year-old pensioner living on a tiny state pension could be sent to prison because she refuses to pay for the untold millions paid to Gary Lineker with her licence fee. There is no point in the Minister’s saying, “This is not enforced.” If this law is an ass, it should be repealed. Parliament should not have on its statute book a law whereby someone can be sent to prison for not paying a licence fee for an entertainment channel—this is ridiculous.
- I would slightly disagree with my right hon. Friend—[Interruption.] The law does not say that someone can be sent to prison for not paying their licence fee. If they are convicted of failing to have a TV licence, they can be fined. Where they then refuse to pay the fine, custodial sentences can, as has happened in some cases, be imposed. Criminalisation is a matter we have debated before, but it is still one of great controversy. We have looked at it on a number of occasions and I am happy to keep it under review.Let me go back to the issue of the licence fee for the over-75s. As the hon. Member for North West Leicestershire (Andrew Bridgen) suggested, in the 2015 funding settlement the Government agreed that responsibility for the over-75s concession should transfer to the BBC. The Government and the BBC agreed to make that change alongside a number of other elements of the licence fee settlement, such as the closure of the iPlayer loophole, to which I have already referred, and an agreement to increase the licence fee in line with inflation from there on. It was also agreed that the transfer would be phased in over two years so that the BBC had time to adjust to meet the additional cost of maintaining that. It was debated extensively at the time of the passage through Parliament of the Digital Economy Act 2017.The result is that responsibility for the over-75s concession now rests with the BBC. The Government made it plain that we hoped and expected that the BBC would maintain the concession, but the BBC chose to restrict it to those in receipt of pension credit. The Government remain disappointed about that decision. I recognise, however, that even that concession represents quite a considerable cost to the BBC, and how the BBC budgets, and the extent to which it feels able to maintain the concession, is a matter for the BBC.
- I am grateful to my right hon. Friend for responding in such detail on these issues. He referred to the agreement that the licence fee would be able to go up in line with inflation. Does that mean that, from April next year, the £159 licence fee will increase with inflation or remain the same? If it goes up with inflation, how much will that mean in cash terms?
- In the licence fee settlement, which is written into the charter, I froze the licence fee for two years and then said that it should return to increasing in line with inflation, but by precisely how much it will increase and when are matters on which the Government will be able to provide my hon. Friend with further information relatively soon—that is not yet determined. The requirement is written into the charter, as I said.The Government recognise the importance of television to people of all ages, particularly older people who value television as a source of entertainment and companionship and as a way to stay connected. We remain committed to ensuring economic security for people at every stage of their life. We believe that the BBC has a duty to ensure that it uses its substantial licence fee income to support older people. As the hon. Member for Ellesmere Port and Neston (Justin Madders) suggested, the BBC has informed the Government that no enforcement action has been taken against over-75s at this stage.
- My hon. Friend the Member for Christchurch (Sir Christopher Chope) asked about inflation and the income that the BBC needs, which is, of course, leading to the end of the benefit for over-75s, but the one factor that I hope the Minister will not ignore in all this is the number of new houses being built. It seems to me that the Government and main Opposition parties are determined to build more and more houses—the Labour party has proposed building 1.5 million—and when all these houses are built, it will mean more income for the BBC. I hope that house building targets will be taken into consideration when it comes to how much money the BBC needs.