BBC

Debate between John Whittingdale and Daisy Cooper

Tuesday 21st July 2020 Commons Chamber

[Daisy Cooper (St Albans) (LD) (Urgent Question)]

To ask the Secretary of State for Digital, Culture, Media and Sport if he will make a statement on changes to the licence fee exemptions, programming and job losses at the BBC.

[The Minister for Media and Data (Mr John Whittingdale)]

First, I congratulate the hon. Member for St Albans (Daisy Cooper) on obtaining this urgent question and demonstrating that persistence pays off.

The BBC has for decades played a vital role in this country’s cultural and civic life, and that has never been more true than during the last few months. During an unprecedented global crisis, it has helped to counter disinformation and share factual information about the coronavirus pandemic, while reinforcing important public health messaging. It has been a constant source of entertainment. It has helped to fundraise for charities through “The Big Night In”, which the Government match funded pound for pound, and it has helped countless families across the UK to educate their children from home through services such as BBC Bitesize.

The BBC has also been a source of comfort to many during this pandemic, and none more so, perhaps, than those elderly citizens who have been forced to shield and stay at home and who are sadly most at risk of experiencing loneliness and isolation as they do so. That is why we welcomed the BBC’s initial decision at the beginning of the lockdown to continue to grant the licence fee concession to the over-75s, and it is why we were deeply disappointed when the BBC board announced earlier this month that it would be ending that concession from 1 August. As a result, four out of five of those previously eligible for a free TV licence will now need to pay. That is a decision for the BBC, but the Government regret the approach that it has taken.

In the 2015 funding settlement—a settlement that was widely considered to be a generous one and which the director-general said was a strong deal for the BBC—we agreed with the BBC that responsibility for the over-75s concession would transfer to it in June 2020. The BBC agreed to have both the policy decision and the funding responsibility. That reform was subject to public discussion and debated extensively during the passage of the Digital Economy Act 2017. During those discussions and the passage of that legislation, Parliament agreed that the future of the over-75 concession and how and when it would be implemented was entirely a matter for the BBC.

The Government’s view is that the BBC should be doing more, given the generous settlement that it received. During the 2015 settlement, we gave the BBC a number of things in return for taking on this responsibility. We closed the iPlayer loophole. We committed to increasing the licence fee in line with inflation, and we reduced a number of other BBC spending commitments. To help with financial planning, we agreed to provide phased transitional funding over two years to gradually introduce the cost to the BBC.

It is now essential that the BBC, having taken the decision to end the concession, gets the implementation of the change right and is not heavy-handed in its approach. While lockdown may be easing, older people across the country still face many challenges and still rely on their TV as much as they did a few weeks ago. The BBC can and should therefore do more to support older people, and it should look urgently at how it can use its substantial licence fee income to support older people and deliver for UK audiences of all ages.

As the national broadcaster, the BBC has a duty to represent all of the nation—both its youngest and oldest citizens, no matter where they live—and I am aware that many people have expressed concerns about cuts to regional programming as well as the BBC’s recent announcement of staffing reductions. Let me be clear that both operational and editorial decisions are a matter for the BBC. It is an independent body and the Government rightly have no say over the day-to-day decisions that it makes on programming, staffing or the administration of the licence fee, but as I have said, including during a recent Adjournment debate, the Government believe that the BBC must represent all of Britain. We set clear targets for news and current affairs and the need to represent all parts of the UK and the charter as part of the BBC’s mission and public purposes. It is for the BBC to meet these and Ofcom to hold it to account on doing so. That means engaging and reporting on local issues across our diverse communities, not just reflecting the views of the metropolitan bubbles of London and Manchester.

While the BBC remains operationally and editorially independent from the Government, we will continue to push it on these issues so that we can ensure that the BBC remains closer to the communities that it serves.

[Mr Speaker]

I just say to the Minister that that should have been three minutes, and he has taken five.

[Daisy Cooper]

The BBC licence fee exists to give the BBC protection from political interference. The BBC should not be making decisions on welfare. That is the role of the Government. Last year, the BBC chairman said that

“the licence fee is at the heart of what we do. It establishes a direct relationship between us and the public and makes absolutely clear that our job is to serve them”—

and yet here we are.

From 1 August, the BBC will fund free licences only for people over 75 who receive pension credit, but two-fifths of people who are entitled to the benefit—about 1.2 million pensioners—are not receiving it. Some do not know how to claim, many struggle to apply and others feel embarrassed about requiring help. Is the BBC really to become a de facto arm of the Department for Work and Pensions?

Let us be absolutely clear about how we have ended up here. It was the Conservative Government who took the decision in 2015 to stop funding for free licences, and it was the Conservative Government who forced responsibility on to the BBC board to make the decision on the future of the concession. The Government should never have asked the BBC to take that on, and the BBC should never have accepted it. Continuing with the licence fee scheme for the over-75s would have cost £745 million—a fifth of the BBC’s budget. To meet that cost without Government funding, the BBC would have had to close all of the following: BBC 2, BBC 4, the BBC News channel, BBC Scotland, Radio 5 live and local radio stations, as well as many other cuts and reductions. As it happens, the means-tested scheme will still cost the BBC about £250 million, and to help meet that cost it has recently announced hundreds of job losses and programming cuts.

The BBC has proved invaluable to the British public during the covid lockdown through its trusted news, entertainment and home schooling resources. Does the Minister agree? Age UK says that it firmly believes it is the Government’s responsibility to look after vulnerable older people, not the BBC’s. Age UK also thinks the Government should take back responsibility for a benefit that was introduced to tackle pensioner poverty. Will he do that? The Conservative Government have been responsible for these secret deals with the BBC that have significantly diminished its ability to serve the British public, so when the licence fee negotiations start in earnest next year, will he commit to a wholly transparent process involving Ofcom?

[Mr Whittingdale]

The decisions taken at the time of the licence fee settlement in 2015 were the result of lengthy negotiations with the BBC, in which it received a number of concessions that it strongly asked for. In return for those, it agreed that it would take on responsibility for the maintenance of the over-75s free TV licence concession. It was up to the BBC how it decided to take that forward. A number of options were suggested and consulted on by the BBC. The Government were disappointed, as I say, that it decided to remove the concession completely. There were a number of other ways it could have addressed it that would have saved the BBC money but would have at least maintained some help for those aged over 75. But, as I said, that was a matter for the BBC. Obviously, we will continue to discuss it with the BBC. In particular, we will be having discussions over the next licence fee settlement in 2022. We will ensure that there is an opportunity for Ofcom, and others, to have an input into that, but that is still some way off. In the meantime, as somebody who was responsible for those negotiations, I believed the licence fee settlement was a good outcome. The BBC made public the fact that it thought it was a good outcome, too.