TV Licensing

‘TV Licensing’ is a trade mark of the BBC and is used under licence by companies contracted by the BBC to administer the collection of television licence fees and enforcement of the television licensing system. The majority of administration is contracted to Capita Business Services Ltd. (‘Capita’). Over-the counter services are provided by PayPoint plc (‘PayPoint’) in the UK mainland and Northern Ireland, and by the Post Office in the Isle of Man and Channel Islands. Marketing and printing services are contracted to Proximity London Ltd. Media services are contracted to Mediaedge:CIA International Limited ("MEC"). The BBC is a public authority in respect of its television licensing functions and retains overall responsibility.

The BBC is required to issue TV Licences and collect the licence fee under the Communications Act 2003 (opens in new window).

The BBC’s contracts with companies engaged to administer the television licensing system are managed by the BBC’s TV Licensing Management Team. The team sits within the BBC’s finance and business division, and ultimately reports to the BBC’s Executive Board (opens in new window). The BBC is governed by the BBC Trust (opens in new window), which represents the interests of licence fee payers and sets the overall strategy.

The BBC assumed responsibility for the administration and enforcement of the television licensing system from the Home Office in 1991.

It is more cost effective than the BBC undertaking these functions in-house. Contracts are awarded following completion of competitive procurement processes undertaken in accordance with EU Public Procurement Regulations.

The BBC’s contracts with companies engaged to administer the television licensing system are managed by the BBC’s TV Licensing Management Team. The team sits within the BBC’s finance and business division, and ultimately reports to the BBC’s Executive Board (opens in new window). The BBC is governed by the BBC Trust (opens in new window), which represents the interests of licence fee payers and sets the overall strategy.

A report of the BBC Trust’s review of licence fee collection (opens in new window) was published in March 2009. The report made a number of recommendations that the BBC Executive is in the process of implementing – the action plan is available here (opens in new window).

The BBC is subject to ad hoc National Audit Office (opens in new window) audits and annual independent internal BBC audits. The TV Licensing Management Team is part of this process, which also includes audit of statements from TV Licensing agents.

The licence fee is imposed by law (the Communications Act 2003 (opens in new window)) enacted by Parliament (opens in new window). The licence fee amount is approved by Parliament in regulations made pursuant to that Act. The Department for Culture, Media and Sport (opens in new window) is the responsible government agency for broadcasting in the UK.

In respect of its powers to use detection equipment under the Regulation of Investigatory Powers Act 2000 (opens in new window) and the Regulation of Investigatory Powers (British Broadcasting Corporation) Order 2001 (opens in new window), the BBC is subject to the independent oversight of the Office of Surveillance Commissioners (opens in new window) (“the OSC”). The OSC regularly inspects the BBC’s use of detection powers, and the BBC must satisfy the OSC that any use of detection equipment is lawful.

Pipa Doubtfire heads the BBC’s TV Licensing Management Team, which is based at:

BBC White City
Room 4436
201 Wood Lane
London
W12 7TS

‘TV Licensing’ is a trade mark of the BBC and is used under licence by companies contracted by the BBC to administer the collection of television licence fees and enforcement of the television licensing system. The companies are contractually obliged to use the TV Licensing logo and heading on all correspondence.

The majority of administration is contracted to Capita Business Services Ltd. (‘Capita’). Over-the counter services are provided by PayPoint plc (‘PayPoint’) in the UK mainland and Northern Ireland, and by the Post Office in the Isle of Man and Channel Islands. Marketing and printing services are contracted to Proximity London Ltd. Advertising services are subcontracted by Proximity to Abbott Mead Vickers BBDO Ltd. Media services are subcontracted by Proximity to PHD Media Ltd. The BBC is a public authority in respect of its television licensing functions and retains overall responsibility.

The BBC is incorporated by Royal Charter (opens in new window) (i.e. it is neither a person nor a partnership nor a company) and neither the Business Names Act nor the Companies Act apply to the BBC. Accordingly, there is not a board of directors of TV Licensing nor is there a body with a status similar to that of a board of directors. The BBC is governed by the BBC Trust (opens in new window).

The TV Licensing Operations Director, currently Alison Roberts. (Please note this does not include customer relations relating to cash payment schemes.)

Information on TV Licensing’s complaints process is available here.

Yes. TV Licensing makes phone calls to ask people to buy or renew a TV Licence or to make general licensing enquiries.

TV Licensing can be contacted via:

• our website at http://www.tvlicensing.co.uk
• by email to enquiries@tvlicensing.co.uk
• the post at: Customer Relations, TV Licensing, Darlington, DL98 1TL
• our call centre by phone on 0300 790 6131.

For enquiries about the TV Licensing payment card scheme:

Payment Card Customer Relations
TV Licensing
PO Box 181
Preston
PR1 3GE

For enquiries about the TV Licensing savings card scheme:

TSC Customer Relations TV Licensing
PO Box 1101
Preston
PR2 0BX

The TV Licensing Costs of Collection chart, at the bottom of this page, sets out the total licence fee revenue collected and collection costs over the last three years.

Section 365 of the Communications Act 2003 (opens in new window) requires the BBC to pay all licence fee revenue it collects (via TV Licensing), less any sums required for making refunds, into the Government’s Consolidated Fund. TV Licensing doesn’t retain any of the licence fee revenue it collects; all monies are passed to the Government, and then on to the BBC, less a small administration fee paid to the Department for Culture, Media and Sport (opens in new window).

The Secretary of State for Culture, Media and Sport may retain a proportion of the licence fee revenue for other purposes (refer to the BBC’s Royal Charter and Agreement (opens in new window) with Secretary of State).

The cost of collection continues to fall and is now at 3.4% (£124.4 million) of the total licence fee revenue (£3.7 billion) in 2010/11. As shown in the TV Licensing Costs of Collection chart below, the costs of collection covers call centres, field force, detection and over the counter services, communications including reminders and information campaigns, postage and administration and contract management.

The BBC doesn’t collate information on licence fee revenue by location. For the purposes of administering the television licensing system, licence fee revenue is not configured by geographical location, as the BBC has no reason for doing this. The total licence fee revenue collected from 2008/09 to 2010/11 is detailed in the TV Licensing Costs of Collection chart at the bottom of this page.

For the 2010/11 financial year (the latest figures available) £16.6m was spent on communications, including reminders and information campaigns. The TV Licensing Costs of Collection chart, at the bottom of this page, contains a break-down of TV Licensing’s top-line costs over the last three financial years.

Specific advertising costs (including the cost of production and airtime to broadcast trails) was exempt from disclosure under section 43(2) of the FOI Act.

Note: The BBC has advertised on commercial media the need to be licensed, the ways to pay and the consequences of non-payment. TV trails are also shown on BBC channels. Communications shown on BBC channels are referred to as ‘trails’ because the BBC, as a public service broadcaster, does not raise revenue through advertising.

The revenue source for TV Licensing is the TV Licence fee settlement by the Government to the BBC. More information on this is contained in the BBC Annual Report and Accounts (opens in new window).

TV Licensing’s budgeted and actual costs over the last four financial years are shown in this chart:

‘TV Licensing’ is a trade mark of the BBC and is used under licence by companies contracted by the BBC to administer the collection of television licence fees and enforcement of the television licensing system.

The BBC does not hold the information requested here. It is a matter for each agent to determine how it chooses to spend the money it receives by way of remuneration from the BBC. Any information that a contractor holds in this regard is not held by them on behalf of the BBC and is therefore exempt from disclosure under section 3(2) of the FOI Act.

The BBC doesn’t hold such information, as prosecutions don’t generate income.

KPMG are the BBC’s auditors. They review statements from TV Licensing contractors as part of annual independent audits of the BBC. As a public body the BBC is also subject to audits undertaken by the National Audit Office.

The BBC contracted the companies listed below to administer the collection of TV Licence fees and enforcement of the television licensing system in the years noted:

• The AMV Consortium – 2002
• Proximity London Ltd 2010
• Capita Business Services Ltd – 2012
• PayPoint plc – 2006
• UK Mail – 2007

This information is correct as at July 2012.

This information is available from the Companies House, the government agency responsible for registering companies. They can be contacted at:

Phone: +44 (0)303 1234 500
Email: enquiries@companies-house.gov.uk

Postal address:
Companies House
Crown way
Maindy
CF 14 3UZ
Cardiff

The BBC has contracted Capita Business Services Ltd, PayPoint plc, the Post Office, and Proximity London Ltd (which subcontracts Abbott Mead Vickers BBDO Ltd and PHD Media Ltd) to administer the television licensing system.

The BBC’s TV Licensing Management Team is responsible for ensuring that these companies comply with contractual obligations, and that service standards are continually improving. The contracts define service levels, and specify that contractors must comply, where applicable, with the statutory requirements (such as data protection and equality legislation) incumbent upon the BBC as the responsible public authority in respect of television licensing.

Fishburn Hedges Boys William Ltd provides media relations and stakeholder activities on behalf of TV Licensing. Fishburn Hedges in turn subcontracts several regional public relations agencies: IAS Smarts (Scotland), Stakeholder Group (Northern Ireland), Brahm (North) Clarke Associates (Midlands) and Quadrant (Wales and the South West). The BBC doesn’t hold information on Fishburn Hedges’ subcontracts with these agencies.

When the BBC’s contract with the Post Office (which previously provided over-the-counter payment services for TV Licensing) came up for renewal, the BBC’s objective in tendering for these services was to seek the best possible way for licence fee payers to pay for their licences in a convenient and accessible way, and to provide the best value for money.

The BBC Executive Board’s responsibility is first and foremost to licence fee payers, and thus in making its decision it determined that PayPoint plc (“PayPoint”) offered the best value for money and a good range of over the counter services. The savings to the licence fee payer are expected to be more than £100 million over the life of the six-year contract, savings which will be put directly into programmes and services. The decision was not directed by the government in any way.

The contract for the provision of over-the-counter payment services for TV Licensing was awarded to PayPoint on 31 March 2006 following the completion of a competitive procurement process, undertaken in accordance with EU Public Procurement Regulations. (Where the overall value of goods and services to be purchased is likely to exceed certain financial thresholds then the BBC is required to follow procedures laid down in the EU Public Procurement Regulations (opens in new window).)

This BBC press release (opens in new window) gives information about the services PayPoint is engaged to provide.

The tendering process was carried out by the BBC’s management and the selection of PayPoint approved by the BBC’s Executive Board, who recommended it to the BBC Board of Governors for approval. Information on the process used by the BBC for tenders (opens in new window) in general is also available.

PayPoint is contracted by the BBC to process, via over the counter collection (facilitated by PayPoint agents):

• Cash Payment Plans (which allows individuals to spread the cost of a TV Licence by making weekly, fortnightly or monthly payments by cash, credit or debit card)
• TV Licensing Savings Card payments (which allows individuals to save towards their next TV Licence – it replaced the TV Licensing Savings Stamps)
• payment for a TV Licence from individuals
• transferring specified transaction data and payments to the BBC and/or its nominated contractors.

Capita Business Services Ltd (“Capita”) operates call centres for TV Licensing.

The BBC does hold information on the number of staff employed by Capita (which administers the majority of TV Licensing) in call centres. This information was exempt from disclosure under section 43(2) of the FOI Act.