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‘Shabby deal’ with Government outlined in which BBC will fund £650m cost of TV licences for over-75s

By Press Association and Press Gazette

The BBC has agreed to fully fund free TV licences for over-75s from 2020/21, the Culture Secretary has said.

It is part of a deal which would see the BBC also benefit from a reduction in the amount of licence fee income used to pay for broadband roll-out, from £150m to nothing in 2020/2021. There will also be a return to inflation-based licence fee increases and a change in the law to ensure the licence fee covers those who only access catch-up TV.

Last week the BBC said it expected licence fee income to drop by £150m in 2016/2017 and announced that it was cutting 1,000 jobs to save £50m a year.

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