THOUSANDS of pensioner households in Oxford could lose their free TV licence when the BBC takes over funding in 2020.

Ahead of the change the BBC has started a consultation on free licences for the over 75s which are currently funded by the Government.

The financial responsibility for the licences will shift to the BBC in just over a year's time.

The broadcaster says the change would take a fifth of its budget and the cuts needed would "fundamentally change the BBC".

Official figures show there are 6,329 households in Oxford that qualify for a free licence.

Charity director at Age UK, Caroline Abrahams, said: "Despite recent progress, there are still significant numbers of older people living on very low incomes who would genuinely struggle to pay the licence fee if required to do so.

"There are two million people aged 75-plus, one-in-two of whom is disabled and one-in-four of whom view the television as their main form of companionship.

"For many others, including those who are chronically lonely...the TV is a precious window on the world."

A TV licence costs £150.50, with a review commissioned by the BBC revealing that funding the scheme across the UK would cost £745 million by 2021, rising to £1 billion in a decade.

The cost of a licence for every household over 75 in Oxford is £952,500, however, projections from the Office for National Statistics show that with the growth in the ageing population there will be an estimated 11,123 over 75 households in Oxford by 2041 - meaning the potential local bill for free TV licences would increase to almost £1.7m.

Options being considered include a discount for over 75s, increasing the qualifying age to 80, or restricting free licences to the most needy.

The BBC said it wanted to hear from viewers before making a decision next summer.

Chairman David Clementi said: "We will listen to their views and balance all the options and arguments before making a decision.

"The board does not underestimate the significance of the decision, its implications for the BBC and its audiences."

The consultation will run until February 12.

To have your say visit www.bbc.com/yoursay