TV licensing....extracting extra money

Javy

I wasn’t aware that when you take out a new TV licence and choose to pay by monthly direct debit, you have to pay a full year’s licence fee for only half a year. You pay £25.75 each month for the first 6 months before it drops to £12.93 for the next 12 months.
Totally wrong and unfair......

Neil_Jones

Javy wrote: »

I wasn’t aware that when you take out a new TV licence and choose to pay by monthly direct debit, you have to pay a full year’s licence fee for only half a year. You pay £25.75 each month for the first 6 months before it drops to £12.93 for the next 12 months.
Totally wrong and unfair......

Except it isn't "extracting extra money" if you'd read the description properly, it works out to the same overall. Pay more now, pay less later.

https://www.tvlicensing.co.uk/pay-for-your-tv-licence/ways-to-pay/direct-debit wrote:

You’ll usually pay for your first licence over six months, at around £25.75 a month. If we have to spread the cost across less than six months, each payment may be slightly higher. After this, you pay for your next licence in 12 monthly instalments of around £12.87 – six payments before your licence is due to be renewed, and six after.

The only "extracting extra money" is the pay by quarterly option at £1.25 a quarter.

Javy

By my reckoning you pay £25.75 for the first 6 months = £154.50 then £12.93 for the following 12 months = £155.15. Total over 18 months = £309.66 which works out at £17.20 per month. £17.20 x 12 = £206.40 per year......approx £50 more than a yearly licence.

Neil_Jones

Javy wrote: »

By my reckoning you pay £25.75 for the first 6 months = £154.50 then £12.93 for the following 12 months = £155.15. Total over 18 months = £309.66 which works out at £17.20 per month. £17.20 x 12 = £206.40 per year......approx £50 more than a yearly licence.

And again with all due respect if you'd read the literature properly, you are paying for the first year's licence over six months, and then "After this, you pay for your next licence in 12 monthly instalments of around £12.87 – six payments before your licence is due to be renewed, and six after."

So in other words you are always going to be six months out payment wise. A TV licence at the current rate of £154.50 works out to £12.87 a month if you just paid 12 equal amounts anyway, the only difference is you pay slightly more to get six months in advance, its no different to when you pay Sky for TV (which is also taken in advance) or your phone company (which is again, paid in advance).

You are not paying more in the long term than you would have had you just paid it in one go, it does work out the same. I can see where you're coming from though but that's the way the system works.