The IFS analysis lands just before the BBC consultation on TV licences is due to end on Tuesday.
Currently, nearly 5 million households get a free TV licence, and from June 2020, the government will no longer fund the £150.50 fee for over-75s.
So the BBC could have to dig into its own purse to fund the £750 million worth of licences, and now has to decide whether to take on this cost, and if so, who will get it.
Paul Johnson, director at the IFS, said: “When free TV licences for the over 75s were introduced in 2000 incomes of the over 75s were much lower, and poverty rates higher, than for younger groups.
“Today the over 75s have average incomes above those of working age families with children, and poverty rates well below those of under 75s.
“It’s hard to believe this would be the group prioritised for spending £750 million on free TV licences if we were making the decision from scratch today”.
According to TV licensing, the UK is buying more licenses than ever. The fee goes towards funding BBC TV and radio shows, allowing them to remain ad-free.
Article source: https://www.huffingtonpost.co.uk/entry/over-75s-now-earn-more-than-younger-people-but-still-get-a-free-tv-license_uk_5c6159e0e4b0eec79b25c574