The licence fee generates around £3.5bn a year The BBC Trust has warned the government it would fight any move to force the BBC to meet the cost of free television licences for the over-75s.
Ministers are reportedly considering whether to transfer the cost to the corporation as part of the Spending Review.
The Department for Work and Pensions currently funds the £556m annual cost.
A BBC Trust spokeswoman said it would be “unacceptable” for licence fee payers to foot the bill.
“Anything at this stage is speculation as we have yet to see the detail of the Spending Review.
“That said it would be unacceptable for licence fee payers to pick up the bill for what is a Department for Work and Pensions universal benefit,” she added.
According to Newsnight’s political editor Michael Crick, if approved, the proposal would take effect from the time of the next licence fee settlement, due in 2012.
He added increases in the licence fee were unlikely to cover the cost, which was the equivalent of a 16% cut in the BBC’s present budget.
A government spokeswoman said it would not comment on speculation ahead of the Spending Review.
Every pensioner over the age of 75 receives a free TV licence, which currently costs £145.50 per year.
The corporation received £3.45bn in licence fees in 2009/10.
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