Free TV licences for up to 3.7m pensioners are being scrapped from June 2020, the BBC has announced.
Under the new rules, only low-income households where one person receives the pension credit benefit will still be eligible for a free licence. (900,000 households are claiming pension credit. The number of households which could be eligible to apply for pension credit could be 1.5 million by 2020).
In 2015, the government announced the BBC would take over the cost of providing free licences for over-75s by 2020 as part of the fee settlement.
But that would have cost £745m, a fifth of the BBC's budget, by 2021/22.
The new scheme will cost the BBC around £250 million by 2021/22 depending on the take-up