Television Licences: Over 75s

Baroness McIntosh of Hudnall Excerpts

Monday 21st January 2019 Lords Chamber

[Lord Ashton of Hyde]

I do not know whether the noble Lord was listening to the Answer I gave to my noble friend. I said that the BBC should not take advertising.

[Baroness McIntosh of Hudnall (Lab)]

My Lords, following on from the question asked by my noble friend Lord Dubs, does the Minister agree, on reflection, that the way the agreement—which we all have to concede was an agreement—was arrived at was, to say the least, not very transparent and did not take very long to be sorted out? It appeared to come upon everybody very suddenly and without much discussion, which suggests a bit of a shotgun arrangement.

[Lord Ashton of Hyde]

The BBC is not a small organisation; it is a very sophisticated organisation. Up until the 2015 settlement, there was an almost permanent state of crisis because the licence fee was funded on an annual basis, so as soon as it was agreed one year, negotiations started for the next year. Partly for the benefit of transparency, the Government agreed a five-year index-linked deal to give the BBC time to organise itself so that it knew what was coming and was able to deal with the concession that it knew would come in in 2020. As a result, the Government agreed to phase in the support from DWP, which comes to an end in 2020. I think it was a reasonable deal that was agreed by both sides.