The BBC licence fee is set to be frozen at £159 for up to two years under plans being considered by ministers to ease the cost of living crisis.

It is expected that negotiations between BBC and Government over the amount of the fee for 2022 and 2027 will conclude by the end of this month.

The corporation is said to have made repeated requests to ministers to raise the cost in line to inflation.

Instead, the licence fee is set to remain frozen at £159 as part of an aim to ease the strain on households facing rising energy costs and household bills. 

The licence fee currently earns the corporation £3.2billion a year, but Tory MPs have said it should be reduce owing to the success of paid-for streaming services such as Netflix. 

The Government has made clear that no decision has been taken as yet, but it is believed a 12-month or two-year freeze is now the most likely outcome of negotiations, reports The Telegraph.  

BBC Director General Tim Davie has been praised by the Government for the progress he has made on tackling concerns over impartiality

The Government has praised BBC Director General Tim Davie for his efforts to address concerns about impartiality

The BBC is unlikely to make this a long-term problem if the decision goes through. It would cause financial problems and lead to budget cuts.

The inflation rate is predicted to increase by 4.4% in 2022. This means that the corporation may have to suffer real-term funding cuts.

Due to increased financial pressures and the Covid pandemic, inflation is on the rise.

BBC insiders cite a rise in filming over the past months after a slowdown during the pandemic. 

John Whittingdale, the media minister, warned that August’s ‘declination in willingness to pay the license fee by Britons is going to be a challenge for BBC.

A million households have stopped paying the charge over the past two years, according to the corporation’s annual report.

In 2027 the license fee should be increased in line with the Consumer Price Index, which is a measure inflation.

According to a source, the BBC would receive a large settlement and recognition for its efforts in addressing critics of impartiality. 

Others believe the BBC must remain financially viable until 2027. Then, it’s possible that the Government will seek to fundamentally reform how the corporation is funded. 

While ministers have abandoned the plans to criminalize non-payments of the license fee in January, the removal of criminal sanctions is still under consideration.    

The announcement comes just days following Nadine, a cabinet minister, publicly vented her anger to friends after Boris Johnson was asked to “stop talking” during heated exchange with Nick Robinson in an interview for Radio 4’s Today.

Media Minister John Whittingdale warned in August that the 'decline in willingness of Britons to pay the licence fee is going to become a real challenge for the BBC

John Whittingdale Media Minister warned August that the BBC’s “declination in willingness” to pay licence fees would be a problem.

Culture Secretary Nadine Dorries expressed anger after Boris Johnson was told to 'stop talking' during an interview on Radio 4's Today programme

Culture Secretary Nadine Dorries expressed anger after Boris Johnson was told to ‘stop talking’ during an interview on Radio 4’s Today programme

The heated interview, which sparked 558 Ofcom complaints, saw the Culture Secretary privately tell allies: ‘Nick Robinson has cost the BBC a lot of money.’  

Although it’s not known where Ms. Dorries vented her frustration at the presenter’s actions, the threats over money are understood to revolve around Mr Robinson’s interview and the role of the minister in monitoring the BBC’s future licence fees. 

Other inside the Government, though, have been impressed with the progress made by BBC Director General Tim Davie on tackling concerns over impartiality.

External experts are expected to be appointed by him to insure that the corporate content remains impartial.

Mr Davie has already cracked down cracked down on the issue by putting controls on staff sharing views on social media and an emphasis on neutrality in news roles. 

Rolling reviews will be conducted by investigators to examine different output areas.

They will cover everything, from tax news coverage to CBeebies programme content. This will ensure impartiality across the organization.

In a 10-point Action Plan, to preserve editorial standards, this initiative was revealed.

The document states: “This strategic program of reviews will include topics and review chairs, which are likely to be independent from the BBC.”

Further, the action plan states that the reviews will not only examine news and current affairs but will also look at the way the topic is handled across a wider variety of BBC outputs, such as documentaries and children’s programming.

External experts will examine how the wider output may contribute to public perceptions about impartiality. However, they must also recognize that different audiences have differing expectations.     

According to a BBC source, there is no agreement on a licence fee. It is up to the government to make the details known to the parliament once they have been made. The BBC can’t comment on speculation.

“We understand that people have financial problems. However, there are very strong reasons to invest in BBC for British citizens, creative industries, and all of Britain.