The BBC could end free television licences for more than 4 million homes

The BBC is preparing to scrap or restrict free television licences for people aged above 75 after publishing a study showing that pensioners are becoming richer.

More than 4.46 million homes with older residents receive a free television licence, saving them £150.50 a year. The benefit was introduced in 2001. The corporation is expected to put forward research in a matter of weeks on ways to reform the subsidy, with a view to introducing a new system by 2020.

Options are likely to include raising the age of eligibility, introducing means-testing to exclude wealthier pensioners or removing the benefit from people above 75 who live with younger relatives.

Any proposal to scrap free TV licences entirely would meet strong resistance from MPs and charities. If