Residents aged 75 and over will get their TV licences for free until the end of 2024.
The existing arrangement was set to expire on December 31 this year, but will now run for a further 12 months.
Licences have been funded by the BBC for pensioners who qualify for income support since January 2021, which benefits around 100 local households.
The Isle of Man government then pays for those 75 and over who don't receive income support - approximately 5,000 households.
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