TV license is out-of-date and , in my opinion , the money is mismanaged by BBC: wages that are too high, bias ( this is backed by academic research) and fake news for example. It is my understanding you need to apply for the free license, so people can choose to continue paying.
I think it is possible that having to pay this amount could make a big difference to some older folk. I know many have to budget to the last penny. With other changes, such as yesterday's announcement that pension credit for couples can only now be claimed jointly if both are over state pensions age ( could make £000s difference as they need to apply for UC instead), those who have no or very small work pensions are struggling more and more. Anything that ameliorates the impact of loneliness in older folk shouldn't be given up lightly.
Free bus travel actually is a benefit to everyone when the wider picture is researched. See, for example -
greenerjourneys.com/wp-content/uploads/2014/09/Concessionary-travel-costs-and-benefits-September-2014.pdf
Free prescriptions ( as is the case in Scotland) is also a better option than the bureaucracy of means-testing, where those who fall just below some cut-off point may lose out across the board.
A fair tax system that factors in such "benefits" is a much better approach, so that those who can afford to pay for these things are actually doing so , in proportion to their earnings. It also means that those older folk who would get these benefits under means-testing are not tempted to feel ashamed/stigmatised/guilty. This is the approach Scotland is trying to take and, to me, is the fairest one.
NHS U turn on trans terminology