Up to 3.7 million pensioners who currently receive a free TV licence will soon have to pay, according to an announcement from the BBC.
A free TV Licence will soon only be available to households with one person who receives Pension Credit aged over 75.
According to the BBC, around 900,000 households are claiming Pension Credit, which is is a non-taxable weekly top up for pensioners based on a person's income.
The broadcaster posted a tweet which explained: "From June 2020 any household with someone aged over 75 who receives Pension Credit will be eligible for a free TV licence funded by the BBC.
"This means: Those least able to pay will still get a free licence.
"Viewers & listeners will still receive the best programmes and services that the BBC can provide."
The corporation's Director-General, Tony Hall, said: "This has not been an easy decision. Whilst we know that pensioner incomes have improved since 2000, we also know that for some the TV Licence is a lot of money. I believe we have reached the fairest judgment after weighing up all the different arguments.
"It would not be right simply to abolish all free licences. Equally it would not be right to maintain it in perpetuity given the very profound impact that would have on many BBC services.
"This decision is fairest for the poorest pensioners. Around 1.5 million households could get free TV licences if someone is over 75 and receives Pension Credit. It protects those most in need. And importantly, it is not the BBC making that judgment about poverty. It is the Government who sets and controls that measure.
"It is fairest for all audiences - of all generations, old and young - who we know value the BBC and the programmes and services we provide. It means these services can continue.
"We also need to look at how the level of the licence fee is set in the future. The last two settlements have been made in the dark and without proper consultation. It is vital that future decisions are evidence-based and made after proper consultation and scrutiny. We need to find a better way."
Sir David Clementi, BBC chairman, said: "Linking a free licence for over 75s to Pension Credit was the leading reform option.
"It protects the poorest over 75s, while protecting the services that they, and the audiences, love.
"It is the fairest and best outcome."
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