47% oppose subsidised digital switchover

47% of respondents to a BMRB survey said they would oppose a rise in the licence fee for the Government to provide "targeted help" to the elderly during digital switchover.

The news came in a BBC-commissioned independent report on the future of the licence fee conducted by Professor Patrick Barwise of the London Business School.

Plans to subsidise the purchase of digital terrestrial TV boxes for what were described in the survey as "vulnerable groups" has long been a controversial issue, both here in the UK and in other countries. Back in 2001, the then director-general of the BBC Greg Dyke said the corporation was considering such a scheme; and in the US, the American government plans to distribute two vouchers worth $80 each to all households for digital terrestrial STBs (at a cost of $1.5bn, ~£850m).

"Targeted help" would be likely to cost between £400m and £800m in the UK, but no decision has yet been taken on the method of funding it.

In his report, Barwise concludes that although the public is split on the principle of subsidised switchover, it is unlikely that a temporary rise in the licence fee would create a "tipping point" after which people would be unwilling to pay the fee. He explained:

"Regardless of the public’s views on the targeted help supplement as a matter of principle, and especially on whether it should or should not be funded through the licence fee, at a level of £4 - £6 per annum or equivalent, its impact on willingness to pay will be small."