Negotiations between the corporation and the Government on the cost of the mandatory licence fee from 2022 until 2027 are expected to conclude later this month. According to insiders, the licence fee is likely to remain frozen at ￡159 for up to two years.

       According to the Telegraph, no decision has yet been finalised but three sources said a 12-month or two-year freeze was likely to be the outcome.

       One source said: "The sense is it has to be firm but fair.

       "Now is not the time to be whacking up the amount households have to pay."

       The insiders said the licence fee will, however, rise in line with CPI, a measure of inflation.

       This is expected to allow for four to five years of increases.

       One insider said that would represent a generous settlement for the BBC while others believe it is necessary to ensure the BBC remains financially strong in the run to 2027.

       When the charter runs out in 2027, the Government could seek to radically reform the way the BBC is funded.

       A BBC source told the Telegraph: “There is currently no licence fee deal agreement.

       READ MORE: BBC waste ￡9million chasing licence fee dodgers

       "Once there is, it is for the Government to announce the terms to parliament at the appropriate time. The BBC cannot comment on speculation.

       “For our part, we understand the financial challenges people are facing, but there are also very good reasons for investing in what the BBC can do for the British public, the creative industries and the UK around the world.”

       Ministers shelved plans this year to decriminalise the non-payment of a licence fee but said criminal sanctions remain under review.

       Last year, the corporation faced backlash after it scrapped free licences for most over-75s.

       DON'T MISS

       BBC’s quest for licence fee dodgers costs the taxpayer ￡9m a year [INSIGHT]

       BBC wasted more than ￡300,000 of license fee payers' money [REVEAL]

       SNP beg Boris for control of BBC as Scots back devolution of broadcast [COMMENT]

       More than three million households are now forced to pay ￡157.50 for a colour licence and ￡57 for a black and white licence.

       There have been calls for the BBC to scrap the mandatory licence fee but the Government confirmed non-payment of the fee will not be decriminalised.

       Those who watch live BBC TV and iPlayer must pay the annual fee of ￡157.50 or risk being fined up to ￡1,000 in addition to court costs.

       The licence fee is the annual cost viewers must pay in the UK and funds the TV, radio and online services of the BBC only.

       During the general election in 2019, senior Tory MPs attacked the BBC accusing the corporation of bias.

       The corporation also faced accusations of depicting people from working-class backgrounds negatively and subject to ridicule.

       Back in January, BBC director-general Tim Davie said BBC reporters must be "activists for impartiality".

       He said: "Do you need the sizzle of partiality to cut through in this space?

       "I think it's really important to say that impartiality isn't dull.

       "It's not the dry bit of reporting, it is absolutely a real appetite for evidence, for truth, for testimony.

       "It can be really good, flavoursome reporting and I think we mustn't give up… we've had some amazing investigative journalism, very compelling reporting for some of these situations around the world and we want to keep making it interesting.

       "And I really think it's very important that those of us fighting for impartial media, for truth-telling, should not give way to: 'We have to do this in a way that gets the maximum clicks immediately', but also doesn't give up on the theatre of it, the emotion of it, all the things we want to bring."

       Express.co.uk has approached the BBC for a comment