TV licence 'cut' after digital underspend

A cheaper digital switchover than expected may result in the television licence fee being cut, the BBC has suggested.

£803m was ring-fenced from the licence fee to support information campaigns and the switchover help scheme, which provides subsidised access to digital television for older and disabled people on income-related benefits. However, it emerged in June that approximately £250m of the allotted money may go unspent due to lower than expected takeup of the help scheme.

Appearing before the House of Lords communications committee, BBC chief operating officer Caroline Thomson said: "We think there will be an underspend. Take-up looks like it may be lower than was predicted, although we have yet to do a big conurbation."

The corporation's director general, Mark Thompson, added that any underspend could be "clawed back in future reduced licence fee rates".