Culture Secretary Nadine Dorries has suggested the BBC licence fee could be axed.
In a tweet, Ms Dorries, 64, said the next announcement about the fee "will be the last" amid reports it will be frozen for the next two years.
The annual payment, which normally changes on April 1 each year, is expected to be kept at the current rate of £159 until April 2024.
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Downing Street said it was "vital" that the BBC sought to keep down costs ahead of an expected freeze in the licence fee.
The Prime Minister's official spokesman said: "It's obviously vital the BBC is doing everything possible to avoid new costs for UK households at a time when many are facing financial pressures and deliver the best value for money for licence-fee payers."
They added: "We have said that we will keep the licence fee until the end of the current charter period in 2027 but ahead of that point we will review how the BBC is funded."
The spokesman rejected Labour's claim that the announcement of the plans was an attempt to distract from Boris Johnson's political difficulties: "The Government's commitment to BBC reform is long standing."
Ms Dorries said at the weekend that the next announcement about the BBC licence fee "will be the last", and indicated she wanted to find a new funding model for the BBC after the current licence fee funding deal expires in 2027.
The licence fee is set by the Government, which announced in 2016 that it would rise in line with inflation for five years from April 1 2017.
The BBC has previously come under fire over the abolition of free TV licences for all over-75s, with a grace period on payment because of the Covid-19 pandemic having ended on July 31.
Only those who receive pension credit do not have to pay the annual sum.
According to the Mirror, if the licence fee went up in line with inflation, now 5.1%, the cost would be £167.
After two years at the same rate, it would have hit £175.
What could replace TV Licence after 2027?
A new tax linked to internet access
The current TV licence is based on people traditionally viewing the BBC through their television screens however with the levy now applying online – via iPlayer too - it could be switched to an online tax.
That would mean a tax on every broadband connection in the UK used to fund public service media.
Introduce commercial adverts
The BBC already takes advertising on its services outside the UK, but not in the UK.
However, one way for the BBC to recoup its licence fee losses would be through commercial adverts. Rivals like ITV and Channel Four already do this – and it brings in billions of pounds a year.
A subscription service
This model would replicate the likes of Netflix and Britbox – although it would not be as optional.
The issue, however, is that BBC content is consumed through free-to-air television and radio broadcasts – and password protecting this would put it all behind a paywall.
This route could mean privatising part of the broadcaster, which would put its purpose in jeopardy.
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