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FOI: Administering the TV Licensing system part 1

Terms and conditions

The terms and conditions of a TV Licence are available on this website.

Is a TV Licence needed to record television programmes or view television programmes on the internet?

If you watch or record programmes as they are being shown on TV then by law you need a TV Licence. A TV Licence is a legal permission to install or use television receiving equipment (e.g. TVs, computers, mobile phones, games consoles, digital boxes and DVD/VHS recorders) to watch or record television programmes, as they are being shown.

The requirement to hold a TV Licence and to pay a fee for it is mandated by law under the Communications Act 2003 and Communications (Television Licensing) Regulations 2004 (as amended). It is an offence to watch or record television programmes as they are being shown on any channel and on any broadcast platform (terrestrial, satellite, cable and the internet) without a valid TV Licence.

A TV Licence is not required to watch television programmes after they are shown on TV. For example, the BBC iPlayer allows users to watch programmes “live” as they are being shown on TV (i.e. BBC1, BBC2, BBC News etc.) and on-demand. If you are watching live content (e.g. a programme as it is being shown on BBC1 or BBC News) you will need a TV Licence. If you are using the BBC iPlayer to watch programmes on-demand i.e. after they have been shown, you do not need a TV Licence. Accordingly, depending on the nature of the content being viewed on the BBC iPlayer, a TV Licence may be required.

Legislation on television licensing is available from the Office of Public Sector Information website. TV Licensing and the law on our website sets out the most relevant legislative provisions.

What is the term of a TV Licence?

A TV Licence is a legal permission to install or use television receiving equipment to watch or record television programmes as they are being shown on TV. The licence fee is not a payment for BBC services (or any other television service), although licence fee revenue is used to fund the BBC.

The requirement to hold a TV Licence and to pay a fee for it is mandated by law under the Communications Act 2003 (“the Act”) and the Communications (Television Licensing) Regulations 2004 (as amended) (“the Regulations”). Under the Act, the BBC as the responsible public authority has the power to determine the terms and conditions of a TV Licence including the duration of a TV Licence. As the TV Licence fee is an annual sum, successive licensing authorities have followed the principle that a Licence should run for 12 months.

An initial Licence (i.e. the first TV Licence a person is issued with) may cover a period of slightly less than 12 months. A person needs a TV Licence from the day they first install or use television receiving equipment - which can be on any day of the month - while the Licence expiry date is fixed i.e. Licences are set to expire on one of 12 end-of-month dates.

This means that an initial TV Licence will expire on the anniversary of the last day of the month preceding the month of issue (e.g. a TV Licence issued on 15 August will expire on 31 July the following year). Any renewal of that Licence is given the same expiry date for the following year (i.e. a full 12 months).

This system is more cost-effective than one whereby a Licence can expire on any day of the year. Given the number of TV Licences in issue (more than 25 million), operating a system with 365 expiry dates would be costly both in terms of administration and enforcement – costs which would be borne by the licence fee payer.

Is an address or person required to be licensed?

A TV Licence is issued in the name of the person paying the fee and covers the use of television receiving equipment at the address/premises specified on the Licence.

The Terms and Conditions of a TV Licence are printed on the Licence. A copy of the Terms and Conditions is available here, and state that: “The licence allows installation and use of TV equipment at the licensed premises by anyone.” So while it is the address/premises that is licensed for using television receiving equipment, the Licence is issued in the name of the person on the Licence.

An “address” is any place which constitutes a “licensable place” for the purposes of the Communications Act 2003 and the Communications (Television Licensing) Regulations 2004 (as amended). An address or place with only one postal delivery point may be registered as being two or more licensable premises e.g. a house split into several flats, or a flat which includes a lodger.

Is a TV Licence required for listening to digital radio broadcasts?

A TV Licence is required to watch or record TV programmes as they are being shown on TV, regardless of the channel and device being used (e.g. TV, computer, laptop, mobile phone, game console, digital box or DVD/VHS recorder), and how it is receive (terrestrial, satellite, cable, via the internet or any other way). You do not need a TV Licence if you only use this equipment to listen to digital radio broadcasts.

 

Mailings/Letters

When and in what circumstances does TV Licensing send letters?

TV Licensing has a statutory duty to ensure that every address where television receiving equipment is installed or used to watch or record television programmes as they are being shown on TV is properly licensed. Therefore TV Licensing writes to all addresses where there is no record of a Licence or the current licensing requirements (if any) are unknown.

Different letters are sent depending on the different circumstances and needs of addresses. The tone of all the letters are carefully considered before being sent, and are intended to cover a range of possibilities. For example, some people without a Licence may have simply forgotten to buy it; others don’t require a Licence, or may require a Licence but deliberately evade paying for it. The tone of the letters progressively becomes stronger if no response is received from an address, to encourage a reply.

Proximity London Ltd is contracted by the BBC to provide TV Licensing marketing and printing services, and sends the majority of TV Licensing letters. In 2009, Proximity sent approximately 56 million items of mail for TV Licensing. Some of the circumstances in which TV Licensing letters are sent include:

  • Reminders letters to addresses with TV Licences that are about to expire
  • Letters to unlicensed premises, emphasising the legal requirement to be correctly licensed if watching or recording television programmes as they are being shown on TV
  • Letters to individuals who are on Cash Payment or Direct Debit Plans
  • Letters to individuals who are enquiring about a refund on their TV Licence
  • Letters to individuals who have informed TV Licensing that they have no need of a TV Licence
  • Ad-hoc letters in relation to individual queries.
Why does TV Licensing write to addresses which don’t use television receiving equipment?

The Broadcasters’ Audience Research Board estimates that approximately 97% of households in the UK own televisions. Therefore, as licence fee evasion takes place within the home, it is reasonable for TV Licensing to send letters asking if a TV Licence is required. If TV Licensing is informed that a Licence is not needed, then mailings will stop for two years for a residential address and three years for a business address. It is unfortunately not possible for TV Licensing to stop contacting an address on a permanent basis as situations change, for example people can move. A person can tell TV Licensing they do not have a television by using this online form.

An enquiry officer may call at the address to verify the situation. TV Licensing visit a sample of homes to confirm there is in fact no television being used as, when we make contact on these visits, a fifth of people visited are found to require a TV Licence.

For more information please see the BBC TV Licensing No Licence Needed policy.

The BBC Trust’s March 2009 report of its review of TV Licensing states: “When dealing with [those who choose not to notify TV Licensing that they do not require a TV Licence] it is not possible for TV Licensing to distinguish between them and deliberate evaders. They will therefore be subject to the same mailings until such time as TV Licensing is notified otherwise.”

How often does TV Licensing send letters?

Every licensed address is sent a reminder letter shortly before and after the Licence expiry date, with a series of letters following if there is no response. From that point the address is treated as ‘unlicensed’ and further contact framed to elicit a response. It is often only when TV Licensing draws people’s attention to the consequences of unlicensed use of television that they will buy the TV Licence they need. The effectiveness of the letters is under constant review to ensure that TV Licensing is acting in the best interests of the licence fee payer.

The BBC Trust’s recent report of its review of TV Licensing recommended that the BBC revise the early reminder letters to ensure they are easy to read, polite and non-accusatory. The BBC has since done so.

What happens if there is no response to TV Licensing’s letters?

If no response is received from an address, the tone of the letters progressively becomes stronger to encourage a reply. Sometimes a stronger message is required for people to comply with their legal obligation. The address will also be listed for a visit from an enquiry officer to enquire about the licensing requirements. TV Licensing enquiry officers made approximately 3.8 million visits in 2008/09.

TV Licensing does not presume that anyone is committing an offence and the letters have no implication for those who don’t require a TV Licence. However, a robust message needs to be communicated to persons evading the payment of the licence fee. This includes highlighting that the penalty for licence fee evasion upon conviction could be a fine of up to £1000 (or £2000 in Guernsey and £500 in Jersey). The BBC Trust’s report of its review of TV Licensing states its quantitative research showed “a majority of those without a television could accept that it was reasonable for TV Licensing to continue to send standard mailings where the householder had not notified them of their status...the Trust supports the continuation of TV Licensing’s working assumption that households who do not notify TV Licensing of their status should continue to receive standard mailings”.

Who approves TV Licensing letters? Who authorises the visits by enquiry officers cited in these letters?

All letters sent are approved by the BBC TV Licensing Management Team.

Authorisation to visit means that an enquiry officer will be assigned to visit homes where no response has been received to mailings. Capita Business Services Ltd is contracted to undertake these visits.

How much does it cost to send TV Licensing letters?

TV Licensing’s costs of collection, including for communications and postage over the last three years is available at the bottom of this page.

TV Licensing minimises postage costs by sending letters in bulk using postage rates purchased competitively wherever possible. The exact cost of sending a letter depends on when and how the letter is sent.

It is not possible to calculate the total cost of sending letters as it includes costs for IT and staff which are not accounted for separately. IT costs are included in the general usage of the equipment, and the salaries of the staff involved are similarly not calculated on the basis of the time spent undertaking tasks relating to these letters. Furthermore, we do not hold information on the staff costs of contractors engaged by the BBC to administer the TV licensing system.

Information on the cost of materials, including stationery is commercially sensitive and was exempt from disclosure under section 43(2) of the FOI Act. We can say that the BBC contracts Proximity London Ltd, who sub-contracts the Orchestra Group Ltd., to generate these letters.

How many letters did TV Licensing send in 2009?

Between 1 January 2009 and 31 December 2009 TV Licensing sent approximately 56 million items of mail, which included letters to addresses:

  • where the occupier informed TV Licensing that they did not require a TV Licence (824,503 letters)
  • where a valid TV Licence was due to expire shortly (5,106,717 letters)
  • where TV Licensing was informed that an occupant recently purchased television receiving equipment (990,299 letters)
  • that paid for the licence fee under a Direct Debit Plan (12,899,779 letters).
How many TV Licences were purchased as a result of reminder letters being sent and how much revenue did this generate?

Between 1 January 2009 and 31 December 2009 approximately 4,382,129 TV Licences were purchased by persons in premises which received reminder letters. It is not possible to calculate how much licence fee revenue this generated because this figure:

  • is an estimate of the number of TV Licences purchased as a result of these letters, and includes concessionary and black and white licences
  • shows only licences purchased over the period specified, and doesn’t account for future purchase of licences which may occur as a consequence of receiving these letters
  • doesn’t account for the fact that not every Licence is paid in full, e.g. where individuals cancel their direct debit.
Are your mailings direct marketing, and if so can I opt out of it?

No. Section 11 of the Data Protection Act 1998 provides individuals with the right to prevent direct marketing. This provision does not apply to TV Licensing’s letters because they are not advertising or marketing material. A TV Licence is not payment for a service. It is a legal permission to install or use television equipment (e.g. a TV set, computer, mobile phone, games console, digital box or DVD/VHS recorder) to watch or record television programmes as they're being shown on TV. Section 363 of the Communications Act 2003 makes it an offence do so without a valid TV Licence. The BBC is the public authority responsible for television licensing, and administers this through its agents who use the BBC trade mark “TV Licensing”.

How many reminder letters has TV Licensing sent over the last four years?

The number of letters classed as reminder letters sent between 1 January 2009 and 31 December 2009 was approximately 7,752,366. The number of reminder letters sent in previous financial years is shown below:

  • 2005/06: 9,704,619
  • 2006/07: 8,629,874
  • 2007/08: 7,528,901
How often does TV Licensing amend its standard letters?

TV Licensing changes the text of its standard letters for a variety of reasons on a regular basis. For example, changes of substance to the letters have been made to reflect:

  • Increases in the TV Licence fee on 1 April in 2005, 2006, 2007, 2008 and 2009. Letters also changed on 1 April 2010.
  • The fact that individuals can no longer pay for a TV Licence in the Post Office (other than in the Channel Islands and Isle of Man).
  • Changes to some TV Licensing policies.
  • Changes to test new copy and creative formats.
How many letters have you sent to people in England, Northern Ireland, Scotland and Wales in 2009?

TV Licensing sent approximately 56 million items of mail in 2009. Information is not collated in a form that would readily allow us to extract from this figure the number of letters sent to addresses in England, Northern Ireland, Scotland and Wales. While it might be possible to estimate this figure, this will require the commission of a bespoke report analysing the TV Licensing database. We estimate such work would exceed the appropriate limit set by Regulations made pursuant to section 12 of the FOI Act. The BBC is not obliged to comply with a request if the cost of doing so would exceed this limit, which is £450 (the equivalent to two and a half days work at an hourly rate of £25).

 

TV Licensing databases and data management

Is it lawful for TV Licensing to process data about me without my consent?

Under the Communications Act 2003 the BBC is the responsible public authority for issuing TV Licences and collecting the licence fee. The BBC’s processing of personal data is necessary to carry out these statutory functions. The Data Protection Act 1998 sets out conditions, at least one of which must be met, when an organisation processes personal data. While a person’s consent is one of these conditions, another is that the processing is necessary for compliance with any legal obligation. TV Licensing processes personal data, on behalf of the BBC, to comply with the BBC’s legal obligation to issue TV Licences and collect the licence fee.

Under the Data Protection Act the BBC is a ‘data controller’ and determines the purposes for, and manner in which personal data is processed. Personal data held by the BBC and its TV Licensing agents for the purpose of administering the television licensing system cannot be used for any other purpose, unless it is expressly required or permitted by law.

How does TV Licensing take care of personal data?

The BBC and TV Licensing take the security of the information we are entrusted with very seriously and have a comprehensive set of controls in place to protect it. Our Information Security Strategy comprises policy, procedural, technical and educational controls, and each staff member is regularly reminded of their responsibilities.

Personal information held by TV Licensing will not be disclosed to anyone outside TV Licensing unless we are required or permitted by law to do so. TV Licensing occasionally receives requests of this nature from the police and government agencies. In assessing such requests we take into consideration the Data Protection Act 1998, Human Rights Act 1998 and the law of confidence. Generally, we will only disclose data when it is necessary and in the public interest to do so (e.g. where the data can only be obtained from TV Licensing and disclosure is necessary to prevent or detect crime).

Further information on how TV Licensing deals with personal information is set out in the TV Licensing Privacy Policy.

Note also that the BBC is not obliged to comply with requests made under the FOI Act for personal information. Section 40 of the FOI Act provides that an organisation is not obliged to comply with a request if the information requested is personal data and its disclosure would contravene the Data Protection Act 1998. The BBC has previously withheld information under this exemption on a number of occasions.

Does the BBC or TV Licensing sell my personal data to any other organisation?

No, we do not.

Is my data protected under the agreements between the BBC’s contractors and subcontractors?

Yes. The Data Protection Act 1998 requires that processing of personal data (including disclosure) on behalf of the data controller must be carried out under a written contract which requires that such processing may only be done on the instructions of the data controller. The BBC’s TV Licensing agents are permitted to disclose personal data to their employees and the employees of their sub-contractors, but retain responsibility for their compliance with the Data Protection Act and relevant contractual obligations.

Does a Paypoint retailer have access to my personal data?

If a person buys a TV Licence for the first time at a Paypoint outlet, the retailer will ask for the person’s name and address, and verify this on a “look-up” system that gives them access to names and addresses only on the TV Licensing database.

If a person renews a TV Licence at a Paypoint outlet, the retailer will simply process it by using the bar code on the renewal letter and will not access any personal data.

If a person makes a payment on the cash payment scheme or saves money using a TV Licensing savings card, the retailer will simply “swipe” the card and will not have access to any personal data.

Where do you obtain the information held on the TV Licensing database, and how do you ensure that the information is accurate and kept up to date?

The TV Licensing address database is one of the largest and most comprehensive in the UK today. The database has existed in its current form since around 1989. Information held on the database is continually updated to ensure it is as accurate as possible at any point in time.

TV Licensing relies on individuals to inform us if their details are not accurate or if their circumstances have changed. TV Licensing also uses external data sources like the Royal Mail’s Postcode Address File, from which updates are usually received daily. Additionally, our enquiry officers’ visit addresses to confirm whether properties are occupied. TV Licensing also refers back to Royal Mail any address (i.e. delivery point) where there is uncertainty (e.g. where two previously separate adjoining properties have been converted into a single property).

TV Licensing makes every effort to ensure that the database is accurate and up-to-date. However, in a database of this size – containing more than 30 million addresses (based on postal delivery points that continually change as new properties are built, and existing properties are either demolished or undergo change of use) – it is inevitable that some errors will occur. Once identified, these inconsistencies are corrected as quickly as possible.

What payment history information does the TV Licensing database store?

The TV Licensing database system holds details of recent payments made by direct debit, credit or debit card, cheque or postal order (partial or full); or via any PayPoint outlet. More detailed payment records are held for people paying on cash schemes, as every payment made will be logged.

Why does TV Licensing ask for phone numbers?

In TV Licensing’s experience, many licence holders appreciate being contacted by phone in the event there is an issue with their payments. However, no-one is obliged to provide this information.

What information does TV Licensing hold on persons who pay the licence fee?

The TV Licensing database system holds (in accordance with the Data Protection Act 1998 and the BBC’s Agreement with the Home Office) only as much information as is required for, or is relevant to, the successful administration of the television licensing system.

Does TV Licensing process the personal data of people who’ve told you they don’t have a television?

Approximately 97% of UK households own a television. It is therefore reasonable for TV Licensing to write to all unlicensed addresses to confirm if a TV Licence is needed. TV Licensing works on the assumption that every UK household requires a Licence, and then ‘discount’ addresses where we are notified that television receiving equipment is not installed or in use.

When a person notifies TV Licensing that they do not require a Licence, this is noted on our database. A stop will be put on further correspondence for two years for a residential address and three years for a business address. An enquiry officer may visit the address to verify that a Licence is not required.

No-one is under any obligation to provide us with personal information. Enforcement measures are taken at addresses if necessary, irrespective of whether there is a name associated with that address or not, although the use of names assists us in keeping the database up to date.

Who designed the TV licensing database system and how does it operate?

The TV Licensing database system was designed by the Post Office I.T. department. The system is currently maintained by Capita Business Services Ltd, a company contracted by the BBC to administer most of TV Licensing. The BBC owns the intellectual property rights to the system.

The operation of TV Licensing involves a vast amount of data, which is stored and managed through a number of interrelated databases held by different agencies on behalf of TV Licensing. The main TV Licensing database holds details of the approximately 25 million TV Licences in force in the UK.

Can the information on the TV Licensing database be used for academic research?

The TV Licensing database can only be used for the purpose of administering and enforcing the television licensing system unless it is expressly required or permitted by law (e.g. by government agencies to detect or prevent crime). The information is therefore not available for academic research.

 

Complaints

How many complaints has TV Licensing received?

Capita Business Services Ltd (“Capita”) administers most of TV Licensing. Revenues Management Services (“RMS”) administers TV Licensing’s cash related payment schemes. The number of complaints received by Capita and RMS from 2004 to 2009 are listed below:

Year Number of complaints (c.)
2006 24,000
2007 30,000
2008 35,000
2009 37,000

The number of complaints should be viewed in the context of the approximately 25 million TV Licences in force and research* showing a rising trend of complaints by consumers in general.

TV Licensing is constantly reviewing complaints and examining how we can reduce the number received.

*Right Now Technologies, 2007.

How can I contact TV Licensing to make a complaint? When can I expect a response to my complaint?

See making a complaint, for information on the TV Licensing complaints process, including on how to make a complaint.

Most complaints are handled by the Customer Relations Department at TV Licensing in Bristol who record and investigate complaints before responding.* A person can seek a review of the complaint if they are not satisfied with the way it has been dealt with by contacting the TV Licensing Operations Director at the postal address below in Bristol.

TV Licensing can be contacted via:

  • Our website at www.tvlicensing.co.uk
  • By email to enquiries@tvlicensing.co.uk
  • The post at: Customer Relations, TV Licensing, Bristol, BS98 1TL
  • Our call centre by phone on 0300 790 6131.

*Complaints about the payment card or savings card schemes are investigated by TV Licensing in Preston who can be contacted at the above email address or at the following postal addresses:

TV Licensing payment card scheme

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

TV Licensing savings card scheme

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

The BBC expects TV Licensing to respond to all contact from persons making enquiries or complaints within a reasonable time, whether a person writes, telephones or emails. It is TV Licensing’s aim to respond to complaints within eight working days.

The BBC regularly reviews TV Licensing’s responses to complaints.

How can I contact the BBC to make a complaint about TV Licensing?

There is nothing to stop a person contacting the BBC at any time. However, the BBC will not normally investigate a complaint until TV Licensing’s own escalation process has been completed.

If the BBC receives a complaint which TV Licensing has not had the opportunity to resolve we may ask TV Licensing to contact the person making the complaint directly. In such cases the BBC is informed of any action taken and copied into any correspondence sent to that person.

If a person remains dissatisfied after receiving a reply from TV Licensing, a further appeal can be made to the BBC’s Head of Revenue Management at:

Room 4436
White City
201 Wood Lane
London
W12 7TS

If a person still feels that their complaint has not been fully or adequately addressed, they can write back to the Head of Revenue Management to escalate the issue to a member of the BBC Executive Board to review.

If a person is still not satisfied with the response they may appeal to the BBC Trust. The request must normally be made, in writing, within 20 working days of receiving the response from the member of the Executive Board. The Trust will decide whether the complaint fits the criteria for appeals that they will consider, and may agree to take complaint. Please write to them at:

BBC Trust Unit
18- Great Portland Street
London
W1W 5Z

The TV Licence fee is imposed by law (the Communications Act 2003) enacted by Parliament. Parliament also prescribes the licence fee amount in regulations made pursuant to that Act. The Department for Culture, Media and Sport (DCMS) is the responsible government agency for broadcasting in the UK. If your query relates to the legal framework for television licensing including the licence fee amount, we suggest you contact DCMS at:

2-4 Cockspur Street
London
SW1Y 5DH

Email: enquiries@culture.gov.uk

If you have a query about TV Licensing’s use of telephone numbers you may wish to contact OFCOM at:

Riverside House
2a Southwark Bridge Road
London
SE1 9HA

Phone 0300 123 3333 or 020 7981 3040

 

TV Licensing’s use of phone numbers

From 1 April 2010 people will be able to use a 03 phone number (which will replace 084 numbers) to contact TV Licensing by phone. This change followed the BBC Trust’s review report into how the licence fee is collected which recommended, amongst other things, that TV Licensing follow the rest of the BBC’s example and consider replacing, in the most cost-effective way, 084 numbers with 03 contact numbers.

The new 03 numbers will be fully in use from 1 April 2010. The benefit to the licence fee payer is that 03 numbers cost no more than a national rate call and count toward inclusive minutes in phone contracts for landlines and most mobile phones.

After 1 April 2010, 084 numbers will continue to be available to the public over a transitional period. However, as TV Licensing will not be publicising 084 phone numbers from 1 April 2010, the vast majority of people will therefore be using the new 03 numbers.

 

What are the geographical phone numbers that underlie revenue sharing phone numbers used by BBC and TV Licensing?
084 phone number Geographical equivalent
phone number
08453000097   02380710229
08453000190   02087527828
08453001086   02920322739
08453002872   02074650264
0845300319   01386421129
08453033008   01628407777
08453007557  01604737652
08453050961   02380374374
08453043008   01628407777
08453053008   01628407777
08453055852   01604737652
08453063027   01619570019
08453660090   02890338136
08459001630  01159350098
08459005200   02476630809
08459005200   02476630809
08459006949   01179804346
08459007949   01179467467
08459123600   02089141603
08459200104   02890550080
08459200105   02890550081
08459311444 01865480995
08459311555  01865889089
08459311666   01865480991
08459409644   01634821032
08459456700   01132247009
08459555678   02890555678
08459568811   02074470045
08459600701   02072242000
08459643120   02087429513
08459770775  01162537453
08459818000   02087439552

Minicom numbers

084 phone number Geographical equivalent
phone number
08448006778 01173021910
08451550151 01772836171
08450505051 01772836171

087 numbers

087 phone number Geographical equivalent
phone number
08700100088  02074650264
08700100180  02085760639
08700100500  02076495512
08700100611  01413075974
08700100612  02074650264
08700100613  02074650264
08700100700  02074650264
08700100720  01386421129
08700100882  01214329956
08700100883  02087438000
08700100884  02087494272
08700101010  01204770270
08700102867  01386421129
08700102897  01214328958
08700106676  02082258222
08700107070  02076490636
08700108891  01216060323
08703332772  01787223300
08703333046  02087524777
08703334988  02087527973
08703336000  02074650071
08709002155  02072089039
08709002626  02076495634
08709003550  02076495633
08709008833  01413075973
08709009595  02089141820
08709022002  02074650264
08709022003  01619532003
08709030304  02890535990
08709090225  02087494272
08709090555  02920323782

Minicom number 

087 phone number Geographical equivalent
phone number
08705758604  01173021400

Note: There are no geographical equivalents for non-geographic numbers accompanied by a call-plan. This is because, depending on the volume of calls, calls to those numbers accompanied by a call-plan may be directed either to an interactive voice response system or to a geographic number.

Why does TV Licensing use 0844 phone numbers and how much does it cost for people to call these numbers?

From 1 April 2010 people will be able to use a 03 phone number (which will replace 084 numbers) to contact TV Licensing by phone.

0844 numbers will continue to be in use after 1 April 2010 to allow people who use them to reach TV Licensing over a transitional period. As TV Licensing will not be publicising 0844 phone numbers from 1 April 2010, the vast majority of people will therefore be using the new 03 numbers.

Until 1 April 2010, TV Licensing used 0844 numbers because they allowed calls from anywhere in the country to be routed to available advisers across TV Licensing’s sites. This enabled calls to be answered quickly by an appropriate adviser.

TV Licensing believed that 0844 numbers made their charging policy clear for callers to understand because there was one capped cost for calls, at a maximum of 5p per minute from a BT landline. As well as the cost of the call itself, there was also an additional connection charge for most calls, with the rate depending on individual operators and packages. For some BT customers this was 6p per call. Given that the average length of a call to TV Licensing is less than three minutes, the cost of a call from a BT landline was approximately 21p (3 minutes at 5p plus 6p connection charge), which was less than the cost of a second class postage stamp at 27p. TV Licensing believed this was a clear and transparent option for callers, and offered good value for money.

The BBC did not receive a profit from 0844 telephone calls. TV Licensing agents who provide call centre services (Capital Business Services Ltd and Revenues Management Services Ltd) received a rebate from their use which offset TV Licensing’s operational costs, and helped to ensure that the costs of collecting the licence fee were kept as low as possible. The rebate received for using these numbers was a small amount compared to the total phone costs incurred by TV Licensing. Information on the amount of the rebate was exempt from disclosure under section 43(2) of the FOI Act.

 

TV Licensing costs of collection

  2008/09 2007/08 2006/07
  £m % of costs £m % of costs £m % of costs
Collection
costs*
88.4 73.7 87.3 71.8 98.9 74.6
Depreciation
of new
systems
 1.1 0.9 1.2 1.0  0.8  0.6
Comms**  22.3 18.6 22.6  18.6  19.0  14.3
Postage  7.1  5.9  9.1  7.5  10.7  8.1
Admin and
contract
management
 1.0  0.8  1.4  1.2  3.2  2.4
Total  £119.9m £121.6m £132.6m 
Licence fee revenue  3,493.8m  3,368.3m  3,242.9m
Costs as % of revenue  3.4%   3.6%   4.1% 
Licences in force (exc ARC)  24.872m   24.740m   24.545m

 Per TV Licence:

  2008/09 2007/08 2006/07

Cost per licence

£4.82 £4.92 £5.40
Cost per licence as % of licence fee 3.5% 3.6% 4.1%
Collection costs* £3.55 £3.53 £4.03
Depreciation of new systems £0.04 £0.05 £0.03
Comms** £0.90 £0.91 £0.77
Postage £0.29 £0.37 £0.44
Admin and contract management £0.04 £0.06 £0.13
Total £4.82 £4.92 £5.40

 * Collection costs include call centres, field force, detection and over the counters services(net of recharges re over 75s).

** Communications including reminders and information campaigns.

Further breakdown of the specific aspects of the collection contracts is not readily available as the fee structure for our main contractor Capita is based on licence sales and encompasses all aspects of the service provision across the call centres and the field operations.

The cost per licence reflects the average cost, most cost less, some cost more depending on the level of chasing required.

Fines collected are not given to the BBC or TV Licensing - they are a matter for the courts.