Capita helps to maximise BBC licence fees and is awarded contract extension until 2022

Oliver Gill
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TV Licence Will Soon Be Required To Watch The BBC iPlayer Catch Up Service
Cracking down for less: The collection cost of TV licences is now less than three pence in every pound (Source: Getty)

Support services firm Capita has sealed a contract extension with the BBC to ensure the broadcaster maximises TV licence collections.

The two-year add-on means the FTSE 100 firm's partnership with Auntie will run until 2022, by which time it will have administered TV licensing for 20 years.

Read more: Capita share price at 10-year low as it issues third profit warning of 2016

Annually, Capita collects £3.7bn in fees on behalf of the Beeb and the contract extension was not subject to a competitive tender process – unlike when the contract was up for full renewal in 2011.

By driving through efficiencies, the BBC's collection costs have decreased to less three pence in every pound, something Capita said it was proud to be part of.

"This contract extension reflects the success of the partnership," said the chief exec of Capita Andy Parker.

The partnership has also borne fruit, according to Capita, in reducing licence fee evasion.

Read more: Capita share price at 10-year low as it issues third profit warning of 2016

Last week a study revealed less than a third of Britons (29 per cent) felt the licence fee ought to be binned.

Furthermore, 41 per cent of respondents to a poll by Strategy Analytics said the fee was the best way to fund the BBC and only 28 per cent wanted the corporation to the be funded in the same way as Channel 4 – also a part state-funded broadcaster.

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