TV Licensing Goodwill and Compensation Payments: An Update

Longer term readers of the TV Licensing Blog might remember that we have previously probed the BBC on the subject of TV Licensing goodwill and compensation payments.

TV Licensing, as most of you will already appreciate, regularly get things wrong. It rarely acknowledges any wrongdoing, so using the official TV Licensing complaints process is frequently (indeed normally) a total waste of time and effort. We're convinced that most complaints are filed immediately in TV Licensing's big bin-sized filing cabinet.

Every so often a clued up customer gets the bit between their teeth and pursues their complaint against TV Licensing with gusto. TV Licensing hates negative publicity, so will often attempt to silence these vocal complainants by offering them a goodwill payment.

Using the Freedom of Information Act 2000, we asked the BBC to provide the following information about TV Licensing goodwill/compensation payments:

1. Any TV Licensing policy documentation that governs the use of goodwill/compensation payments.
2. The number of goodwill/compensation payments authorised by TV Licensing in relation to the conduct of its administration and enforcement activities. Please provide this as an annual breakdown.
3. The cumulative annual cost of goodwill/compensation payments disclosed in response to point 2 above.
4. The value of the highest goodwill/compensation payment made each year to date.
5. The number of civil claims made against TV Licensing - e.g. those were legal proceedings were instituted against TV Licensing at the County Court. Please provide this as an annual breakdown.
6. The outcome of those civil claims disclosed in response to point 5 above. Please indicate any judgments that went against TV Licensing. Please include the values of any settlement payments made by TV Licensing. This includes any informal settlements made by TV Licensing, but not ordered by the court.

We only asked for information produced or held by the BBC since 31st December 2013, the date of our previous request.

In its response (we'd be grateful if any media outlets using this could acknowledge the TV Licensing Blog as the source) the BBC confirmed that the TV Licensing Goodwill Guidance provided previously was still valid.

The BBC also provided the following information:

• In 2014 there were 573 goodwill payments made, which totalled £8,917. The highest individual goodwill payment was £150.
• In 2015 there were 468 goodwill payments made, which totalled £7,681. The highest individual goodwill payment was £250.
• In 2016 there were 362 goodwill payments made, which totalled £7,491. The highest individual goodwill payment was £575.
• In 2017 there were 450 goodwill payments made, which totalled £8,512. The highest individual goodwill payment was £350.
• In 2018 there were 514 goodwill payments made, which totalled £9,769. The highest individual goodwill payment was £184.

The Goodwill Guidance includes the following impact matrix:

The document also gives examples of the types of complaint likely to fall in each category and how they should be dealt with:

• Very Low Impact Complaints:

• No amount should be offered.
• A typical complaint in this category could be a dislike of the call centre hold music or opening times.

• Low Impact Complaints:

• Amount offered should be 10 % of the licence fee.
• A typical complaint in this category could be sending marketing to an address in error despite the customer highlighting this and a valid licence being in place or failing to change an address appropriately despite the error being highlighted by the customer.

• Medium Impact Complaints:

• Amount offered should be 20 % of the licence fee.
• A typical complaint in this category could be where TV Licensing have either breached legislation or guidance in error, or where there is evidence that a member of TV Licensing staff has displayed exceptionally poor service.

• High Impact Complaints:

• Amount offered should be 30 % of the licence fee.
• A typical complaint in this category could be where TV Licensing has carried out a minor data breach or we have threatened to prosecute in error.

• Very High Impact Complaints:

• Amount offered should be 50 % of the licence fee.
• A typical complaint in this category could be where TV Licensing has prosecuted someone in error. This may also be used for minor accidental damage to property which is supported by evidence.

• Extremely High Impact Complaints:

• Amount offered should be 100 % of the licence fee.
• A typical complaint in this category could be inappropriate prosecution (e.g. being wrongly criminalised by TV Licensing malpractice or incompetence), loss of earnings through court attendance or serious data breaches.

The document also explains that TV Licensing may exercise discretion and award larger payments than those mentioned above.

On goodwill payments a TV Licensing spokesman said: "The number of goodwill/compensation payments has halved since 2012 and the average payment in 2018 was just under £20. TV Licensing always aims to provide good customer service, but if things go wrong we want to put them right quickly.

"In a minority of cases, we may offer a gesture of goodwill but we are always mindful of how we spend the licence fee."

The BBC also provided a breakdown of County Court proceedings against TV Licensing (we'd be grateful if any media outlets using this could acknowledge the TV Licensing Blog as the source).

Anyone who feels aggrieved by TV Licensing's caustic tone or incompetent employees is advised to complain in the strongest possible terms. It's only fair that the BBC and TV Licensing should pay for their habitual misdeeds!

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