A lesser-known rule that could save 475,000 people £174.50 annually has been highlighted. It's been confirmed that UK households can reduce their TV Licence fee from £174.50 to nothing, offering a significant saving amid the current cost of living crisis.

The fee is applicable to any household that watches or records programmes as they're being broadcast live on any TV channel or views live programmes on any online TV service such as , or Amazon Prime Video. To be eligible, you must be aged 75 or over and receiving pension credit from the Department for Work and (), potentially saving you £174.50 each year.

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According to Policy in Practice, there are currently 425,000 eligible individuals over the age of 75 who qualify for pension credit based on their income but have not yet applied. The free TV licence scheme for those aged 75 or over was modified in August 2020.

You can now apply for a free TV licence if you're over this age and either you or your partner living at the same address is receiving Pension Credit.

This can be Savings Credit or Guarantee Pension Credit, Yorkshire Live reports, reports . The TV licence needs to be registered under the name of the person in your household who is 75 or older and receiving Pension Credit.

UK households have been advised that a free licence will not be given automatically. To find out if you're eligible for a free TV licence, give TV Licensing a ring on 0300 790 6071. You can also apply through this channel.

If you're applying online or by post, you'll need to provide two pieces of evidence that confirm you're receiving Pension Credit and are aged 75 or over.

Your passport or driving licence can usually be used as one piece of evidence. Ensure the name you use to apply for your free TV licence matches the one held by the DWP.

If the licence at your address is under someone else's name, you'll need the existing licence number when applying for your free one.

A free TV licence covers everyone living in your home, regardless of their age. If no one in your household receives Pension Credit, you'll have to fork out for your TV licence.

There are other situations where people can get a hefty discount on their TV licence. For instance, if you live in residential care or sheltered accommodation, you're entitled to a discount.

If you're residing in a qualifying residential care home, sheltered accommodation or supported housing, you can get a TV Licence for just £7.50.

To qualify, you must also be either retired and over 60 or disabled. Your housing manager can check if you're eligible and apply on your behalf.

On the other hand, if you're registered as blind or severely sight impaired, or share a home with someone who is, you can claim a 50 per cent discount.

The licence has to be in the name of the person who's blind. If it isn't, a new application can be submitted to transfer it into their name.