“Only under Labour would people who get up every morning to go to work be told to pay more, so others can sit at home and watch television for free.”
Benefit claimants could be handed free television licences under plans being explored by Labour, sparking anger that hard working families and businesses would be left footing the bill.
The proposals are contained in a Government review of the BBC’s Royal Charter, overseen by Culture Secretary Lisa Nandy, which suggested that people on benefits could qualify for free licences or new concessions.
Critics last night said it would be outrageous for those not in work to receive free television while millions of taxpayers continue to pay £174.50 a year for the licence fee.
The consultation paper said more than half of poorer households fail to keep up with licence fee payments and pointed to countries such as Germany, where people on benefits qualify for free licences or discounts.
UK officials said they would look at “further targeted interventions”, including new concessions and alternative payment schedules.
The prospect of a new handout comes as Sir Keir Starmer faces growing criticism over Labour’s failure to get people off benefits and back into work. Welfare spending is on course to soar to £378 billion by 2029 to 30, as the number of working age claimants continues to rise.
Opponents warned that Labour’s priorities were becoming clear, with those who work facing higher taxes while benefit claimants are rewarded with yet more perks.
Nigel Huddleston, the shadow culture secretary, said it would be “completely unfair” for claimants to receive free TV licences while “hard working taxpayers foot the bill”.
“Under Labour, businesses and families are punished with higher taxes to keep the country running, while people on benefits could be sitting at home watching TV for free at everyone else’s expense,” he said.
“More than six million working age people are now on benefits, yet this Government seems more interested in rewarding inactivity than encouraging work.”
The review also revealed that the number of households paying the licence fee has fallen sharply, from 25.2 million in 2020 to just 23.8 million this year, as viewers turn away from traditional television.
At present, over 75s on pension credit receive a free licence, those in residential care get a discount and blind or severely sight impaired people pay half price. Around 287,000 households use a payment plan to spread the cost, although more than half fail to keep up with instalments.
Despite this, the Government paper suggested the system should do more to reflect “different household situations”, a phrase critics say masks a drive to extend benefits funded by ordinary taxpayers.
The consultation comes amid a deepening crisis at the BBC. The broadcaster has been rocked by the resignation of director general Tim Davie and head of news Deborah Turness following a Panorama scandal involving a misleadingly edited Donald Trump speech.
The controversy has since escalated, with the former US president launching a $10 billion, £7.5 billion, legal claim against the corporation.
Alongside proposals on licence fees, the green paper floated radical ideas to prop up the BBC’s finances, including advertising on its services and the creation of a Netflix style subscription model.
Under one plan, viewers would have to pay extra to access archive content on iPlayer. Another would keep news and children’s programming free but put drama, entertainment and sport behind a paywall.
The paper also suggested that BBC content could be licensed to train artificial intelligence systems and made more widely available on platforms such as YouTube.
Ms Nandy said the BBC must be put on a “sustainable and fair” financial footing, while remaining independent and trusted.
But critics say the consultation underlines Labour’s instinct to load costs onto those who work and pay tax, while expanding handouts for those who do not.
As one senior Conservative source put it, “Only under Labour would people who get up every morning to go to work be told to pay more, so others can sit at home and watch television for free.”
The government advised all.pensioners would be allowed free TV licence, not just those on pension credit, which is not fair. You could be just outside pension credit and miss out again. Should be for all pensioners.