The BBC is to fund the licence fee for the over 75s at a cost of £650m !!
I must be missing something ! They are not going to do anything extra to what they are doing now . Once a channel is up and running it doesn't matter
how many actually use it at any particular time , be it a hundred or a hundred million, the running costs are the same .
There is no suggestion that programmes are going to be any different nor that administration costs will appreciably change so where the £650m going to ?
At the moment the Government pay the licence fee of the over-75s to the BBC. From now on, they won't and the BBC's funds will be £650 million short as a result of this decision.
Yet another example of politicians hating any organisation that criticises them and getting their own back when they can. All parties do it. Seems to me that means that the Beeb's getting it right.
The BBC is funded by the license fee. Gordon Brown bribed pensioners in 2001 and their 'free' license was paid by the Government from direct taxes. Now the Government are refusing to compensate the BBC for the loss of £650million. But the BBC do not have the power to scrap the perk.
So basically the BBC have less money for programmes and aquisitions like Sports rights.