House of Commons - Culture, Media and Sport

Select Committee on Culture, Media and Sport Written Evidence

Memorandum submitted by Age Concern

1. INTRODUCTION

1.1 Age Concern England (the National Council on Ageing) brings together Age Concern organisations working at a local level and 100 national bodies, including charities, professional bodies and representational groups with an interest in older people and ageing issues. Through our national information line, which receives 225,000 telephone and postal enquiries a year, and the information services offered by local Age Concern organisations, we are in day to day contact with older people and their concerns.

1.2 Age Concern has been a member of two groups set up by Government to advise them on consumer issues relating to analogue switch-off. We have contributed to and supported the recommendations of the reports of both of these groups. The first was "Digital Decisions: Viewer Choice and Digital Television" that was published by the Viewers' Panel in December 2001 and the second, "Persuasion or Compulsion? Consumers and analogue switch-off" published by the Consumer Expert Group in October 2004. Age Concern has subsequently been asked to join a revised Consumer Expert Group with the remit to advise on the effectiveness of Government communications on its digital switchover policy and their communications regarding a targeted assistance scheme.

1.3 The plan to switchover from analogue to digital is complex and involves a number of considerations, all of which are important. However our main concerns have related to affordability and usability and installation of equipment. We are pleased to submit evidence to the Culture Media and Sport Committee's inquiry into Analogue Switch-off which relates specifically to the issue of interest expressed by the Committee regarding the protection of vulnerable groups in terms of financial and practical assistance.

1.4 Television is of particular importance to older people. Older households are less likely than others to have access to consumer durables apart from televisions and telephones. However, they are less likely to have a satellite, cable or digital television. [2]In a survey conducted by Age Concern Research Services recently among the 50+ population, watching television came out as the top favourite pastime. [3]Perhaps unsurprisingly, this was highest for the 70+ age groups.

2. AFFORDABILITY

2.1 We have been quite concerned at recent assumptions in some places that because the cost of digital television has fallen significantly since its introduction it is now affordable for everyone. However, Age Concern accepts it is difficult to come up with a simple definition of affordability. Whilst some low income households have incurred the additional costs of switching to digital, surveys have found that cost is a barrier to take up to others.

2.2 Age Concern did not agree with the recommendation of the Ofcom Consumer Panel that financial assistance should be restricted to those people aged 75 and over and registered blind people because of the already established principle that they receive free television licences. They reasoned that since Parliament had already decided that financial help in the form of free television licences should be given to these groups, even though this meant that people not in financial need received the benefit, that the same groups should receive financial help with switchover.

2.3 However, we do not think the reasoning for giving free television licences is the same as giving financial help for costs incurred by people on low incomes, through no fault of their own, to retain their ability to watch television. As the Consumer Panel Report itself states: "It is important to recognise that not all older consumers are vulnerable—many are financially secure|"[4] We agree with this statement and would add that while there will be older people who are financially secure who are 75+, there will be those who are under the age of 75 who are not.

2.4 The Quest survey results in their recent report on consumer attitudes to digital television[5] showed that about 25% said they could not afford to switch. This figure could be higher if some of the 40% recorded as saying they will get it when the costs go down and the 25% saying they are waiting for costs to fall in the same survey ultimately fall into the cannot afford category as well. The report noted that it was specifically those in social groups D and E who see cost as a particular issue.

2.5 Many older people are on low incomes with a fifth of older people living in poverty and nearly half of pensioners having incomes too low to make them liable for income tax. Age Concern is aware that older people on very low incomes often budget very carefully to avoid getting into debt. For example they may turn off their heating to ensure they can pay their fuel bills. So whilst they will have budgeted for paying the annual television licence, they will find the one off costs of conversion, very hard to find.

2.6 As a minimum people will need to pay around £50 for a set top box—nearly half the weekly income of a single person relying on Pension Credit guarantee. And features such audio description and subtitling are unlikely to be included since these tend to be available only on more expensive set top boxes. Given the need to convert will not be their personal choice it seems hard to argue they should not get financial help if they want to be able to continue to watch television, a service they value highly.

2.7 However if these households need to install satellite or have to get a new aerial we are talking about a minimum cost of £150 to convert. Whilst Age Concern was pleased when Sky introduced its free satellite digital television service, we were unconvinced that this service would continue to be offered free in the long term. Sky is a commercial organisation and we noted that the current access card that is needed to access their free to view services is only guaranteed by them for five years. Given Sky had withdrawn access to free to view services in the past we were worried that after five years, any renewal of the access card would involve subscription payments which would be an additional burden for older people on low incomes.

2.8 We strongly supported the recommendation of the Expert Group that there was an urgent need prior to the switchover timetable announcement for provision to be made for an independent free to view satellite option in which there can be confidence that it will remain free for longer than five years. Age Concern was delighted when it was recently announced that ITV would join the BBC in a launch of a free satellite service, Freesat, sometime in 2006. We hope that Channels 4 and 5 will join them in due course. However, it is not yet known if installation of Freesat will require an initial one off payment for installation costs and what level of cost this may be.

2.9 In conclusion we believe that the issue of affordability must be considered separately from the need that some people will have for practical assistance. The Government should consider extending financial help to those on a low income who are under the age of 75.

3. ACCESSIBILITY AND INSTALLATION

3.1 Although people are healthier now than they have been in the past no one can yet evade the effects of the ageing process. Although this will occur at different rates and with different severities, the older one gets the more likelihood there is of experiencing the normal impairments of ageing. These mainly relate to the senses, reaction times and mobility. Whilst older people will continue to use mainstream products and services, because of these normal impairments, at the moment they may have greater difficulty in doing so. This is because in general, despite Age Concern raising the issue at every opportunity, and the fact that the numbers of older people are growing in both the UK and European market, manufacturers fail to design products to take account of the usability needs of older people.

3.2 Common complaints from older people are that controls are too small; they need too much force to operate; controls are multi functional; items have poorly lit and small display panels, products are too complex making it difficult to memorise operations and they are often accompanied by incomprehensible instructions. These complaints apply particularly to products related to new technologies such as mobile telephones. We were concerned that the move to digital television could result in older people finding it harder to operate this equipment.

3.3 These concerns were confirmed by some research conducted on behalf of the Department for Trade and Industry by the Generics group in 2003. [6]This found that the current digital television equipment was generally not as usable as analogue. Whilst dexterity, vision and hearing impairments caused difficulties, the main barrier to use was due to "the cognitive challenges of digital equipment . . . because it is non intuitive and exhibits inconsistencies." The report made a number of recommendations that would improve the situation including improved instructions for installation and use and improved remote control design. It also estimated that 15% of viewers would need help with the installation and set up of digital terrestrial television. Of these they estimated that 48.1% of those aged over 75 would not be able to install a set top box with 23.7% of them not being able to identify and purchase one either.

3.4 The report published by the Department for Culture, Media and Sport on the Switchover Technical Trials also found older people experiencing problems in installing the equipment. [7]The trials aimed to find out the specific impacts on older and disabled households of digital switchover. It found that 35% of households aged 65+ required assistance with installation. The report also recommended that remote controls be more ergonomically designed and there should be greater use of large type in instructions and on remote controls. It also recommended an "initial personal step by step training session to teach the basic operations with a follow up telephone call for vulnerable households," the majority of whom were aged 75 and over.

3.5 Having consistently argued for the need for some older households to have physical help in installing digital equipment in their homes since 2000, Age Concern is pleased that the Government has accepted that "|there will be some people who need assistance to understand, install and use digital television equipment",[8] a commitment confirmed by the Secretary of State for Culture, Media and Sport in her speech to the Royal Television Society on 15 September 2005

3.6 However while we welcome the assistance that will be provided to those over the age of 75 and younger people receiving Attendance Allowance or Disability Allowance, we are concerned that the current proposals for targeted assistance will exclude some people who need it. As already stated in paragraph 2.3 above, there will be households who are under the age of 75 and who do not experience severe disabilities who will have difficulties affording to switch and/or may need practical assistance.

3.7 As the pilot trials have shown, there are people who are outside these categories who will experience problems in choosing and installing the equipment. Although harder to identify than households already in receipt of free television licences or particular benefits, we sympathised with the Ofcom Consumer Panel's recommendation that practical help should be directed to those households without an adequate network of friends, family, neighbours and carers. Staff on the Digital UK Helpline should be able to refer people for practical assistance even if they are outside the specified groups where it is clear they are having major difficulties in converting to digital TV and do not have appropriate support.

3.8 We are also concerned that this installation service will only be free to households claiming Income Support, Job Seekers Allowance or Pension Credit. Since the most recent figures suggest that around 30% of households entitled to Pension Credit are not receiving it, this additional means test will result in some households aged 75+ not being able to claim free practical help. We have some concern that worry about the costs of seeking help will put off some households from asking for it, and have already emphasised in this submission the importance of ensuring the switchover is affordable.

3.9 We have also raised our concerns with Government and SwitchCo, now Digital UK, that the announcement of digital switchover will offer new opportunities for rogue traders, particularly with regard to aerial installations, and distraction burglars possibly gaining entrance on the pretence of retuning the television. To minimise this risk we have supported the development of the digital logo but clearly this needs to be widely advertised if older people are to know what it means.

3.10 Similarly any specific help to vulnerable households will need to pay particular attention to matters of security to protect these households. Age Concern recommends that Digital UK adopts the processes that were used by the Channel 5 retuning operation to ensure as far as possible that any opportunity for the exploitation of older households is minimised. As well as running security checks before employing staff, Age Concern considers that explanatory letters should be sent to the households to be helped before anyone calls. These letters should include specific advice on the care the householder should take before letting a stranger into the house and to give a personal password so that the householder can be sure the caller is a bone fide digital installer. Installers should have identity cards with their photograph and details in large font and a telephone number for the householder to make a verification check if they want to. It would also be helpful if the project could liaise with the local police and voluntary agencies such as Age Concern in advance to let them know they will be operating in the area.

4. OTHER CONCERNS

4.1 We are concerned that part of the funding for Digital UK and the whole of the funding for the help to vulnerable groups is expected to come out of the BBC licence fee income. [9]Whilst in our consultation response to the Green Paper on the Review of the BBC's Royal Charter we supported the continuation of the licence fee in the short term as the "least worst" option, we expressed concerns that the current situation where the majority of the population continues to support the licence fee funding method for the BBC should not be jeopardised. Whilst accepting the fact that the BBC has an important part to play in achieving analogue switchoff, Age Concern does not think that funding the process is an appropriate use of licence fee income.

4.2 Further the licence fee is regressive, being more onerous for households that are on low incomes than for rich ones. This was the reason that Age Concern could not support the extension of the Accommodation for Residential Care licence concession in its submission to the Davies Panel investigating concessions in 1999. We did not think it appropriate that some low income households should subsidise other low income households. Due to its regressive nature we also opposed the decision of the Government to allow above inflation increases in the licence fee to support BBC development of digital services. Not only are above inflation increases hard for people on pension income to meet, but many of them would not actually receive these digital services that they have paid for.

4.3 Not only does Age Concern think is the licence fee an inappropriate mechanism to fund digital switchover including help for vulnerable groups, but we would be particularly concerned if, as seems possible, it meant that the BBC might, yet again be awarded above inflation licence fee increases over the next five years to meet these costs. In her speech of 15 September[10], the Secretary for State said: "The costs of the schemes will be reflected in our assessment of the BBC's future funding needs, leading to a new licence fee settlement from April 2007." We are very concerned that this indicates above average inflation licence fee increases, which are always difficult for pensioners, whose income usually rises in line with inflation, to fund and for purposes the licence fee is not designed for.

4.4 We also think that by insisting that licence fee monies are used to fund the Digital UK help and communications programme, there will be some reluctance to spend adequate resources on the programme, despite the key importance of communications to ensure effective switchover. The current Digital UK helpline is a good example of this. Given that the most likely people to call this will be those who have not yet chosen to switch to digital, it could be argued that now they have no choice but to switch, they should not have to pay for the costs of getting advice on how to do so.

4.5 However, as Age Concern knows from the experience of running its own free call Advice Helpline, the costs of offering a free help lines are high. It seems possible that the decision to make the helpline an 0845 number rather than an 0800 number has resulted from the desire to keep expenditure funded by the licence fee to a minimum. Similar concerns to keep down the costs may also have affected the decision on who should be given financial and practical help. Given that ultimately the Government will benefit significantly from the released spectrum after analogue switchoff, Age Concern considers the switchover programme should be fully funded from taxation.

29 September 2005