§ Mr. GogginsTo ask the Secretary of State for Social Security if he will make a statement about the funding of the over 75s' free television licence scheme. [136146]
§ Mr. RookerIn his pre-budget statement on 9 November 1999, my right hon. Friend the Chancellor announced that, from autumn 2000, every pensioner aged 75 or over will receive their television licence free of charge. The over 75s' free television licence scheme will be introduced from 1 November 2000 and the cost of this concession will be met from public funds, via payments by the Department of Social Security to the BBC.
The Amendment (Cm 4797), dated 3 July 2000, to the Agreement (Cm 3152), dated 25 January 1996, between the predecessor of the Secretary of State for Culture, Media and Sport and the British Broadcasting Corporation was laid before Parliament and approved by way of an affirmative resolution on 6 July. Under the Amendment the Secretary of State for Social Security undertakes to pay the Corporation (out of moneys provided by Parliament) a sum or sums equivalent to the moneys foregone by the Corporation in issuing free television licences together with an additional sum or sums in respect of the administrative costs arising from the issue of such licences.
Parliamentary approval of this expenditure will be sought in a Supplementary Estimate for the Housing benefit subsidies, council tax benefit subsidies and administration, payments into the National Insurance Fund and Social Fund and other grants vote (Class XII, Vote 2). Pending that approval, urgent expenditure estimated at £348 million will be met by repayable advances from the Contingencies Fund.
351WThe advance will be repaid from Class XII, Vote 2 when Parliament has approved the Supplementary Estimate.