In 2024–25, the BBC spent £166 million on collection of the licence fee, (equivalent to 4.3% of licence fee income), up from £143 million (4.0%) in 2023–24. It issued 60.2% of licences electronically, and around 40% paper licences.19 The BBC told us that postal costs were a significant component of collection expense and that minimising reliance on mail and moving more contact online was a key part of reducing the cost of collection. It also highlighted rising postal prices of 14.4% in the year, which added further pressure. In parallel, the BBC said the cost of collection included investment in a new over-75s (pension credit) system, that automatically checks entitlement with DWP and issues licences, improving customer experience by reducing processing from up to two weeks to around two minutes, and as a consequence the BBC expected to save money.20