Theresa May said taxpayers want the BBC to use "its substantial licence fee income in an appropriate way", when asked about the future of free TV licences for over-75s.
Labour MP Rosie Cooper asked Theresa May about a Tory election promise to keep the provision for those 75 and older.
The BBC has just ended a consultation about the government-funded scheme, which is due to end in 2020.
The PM said she expects the BBC to continue the scheme.
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