Hundreds of thousands of households are eligible for a free TV licence but are not claiming it, meaning they are missing out on a huge saving every year. The cost of a standard TV licence went up from £169.50 to £174.50 a year in April. Meanwhile, the price of a black and white licence was raised from £57 to £58.50. However, there are many Brits who might not be required to pay TV licence.

Those who want to watch live TV including the BBC, ITV and Sky need to pay the fee as not doing so is against the law. But under the current rules, there are particular groups that are exempt from the requirement, such as those over the age of 75 claiming pension credit – they qualify for a free licence.

There are 425,000 people at present who are over 75 years old and eligible for pension credit according to their income. However, according to Policy in Practice, those people are yet to apply for the benefit.

An additional 50,000 people who are currently receiving pension credit are not making the most of the subsidised TV licence they are entitled to.

There are two ways to apply for a free TV licence: you can visit the TV licensing website or call 0300 790 6071 and apply over the phone.

For those who have yet to make use of the pension credit. The benefit tops up a weekly income to £227.10 if single or £346.60 if a person has a partner. It is known as “guarantee credit”.

Those who have a lower income than this are very likely to be eligible for it. However, if an individual’s income is slightly higher, they could still be eligible for pension credit if they have a disability, care for someone, have savings or housing costs.

Those with a disability or claim attendance allowance, the middle or highest rate from the care component of disabliity living allowance (DLA), the daily living component of personal independence payment (PIP), armed forces independence payment or the daily living component of adult disability payment (ADP) at the standard or enhance rate.

The “savings credit” part of pension credit can be claimed by those who have reached state pension age before April 6, 2016 and have saved some money for retirement such as a personal or workplace pension. For single people it is worth £17.30 and for those with a partner it is £19.36.

Claims for the benefit also mean eligibility for £25 a week for cold weather payments and a £150 warm home discount.