Any changes will be made “well ahead” of the BBC Charter renewal in 2027, she said.
The Government believes the £159-a-year charge is becoming increasingly unsustainable as more viewers shift online, and Dorries believes the company is too London-centric and dominated by “elitist” metropolitan attitudes, despite the huge Media City hub in Salford.
When news that the BBC licence fee could be scrapped earlier this year, we hit the streets to ask the people of Liverpool what they thought about the Beeb and the way it is funded.
‘I think the licence fee is fine’
Val says: "I think the licence fee is fine. If they scrap it, it'll mean people are forced into having to pay for services rather than just having your licence fee."
‘I think the BBC has done a lot that people don't like’
Robert says: "I think the BBC has done a lot that people don't like, and they've got away with it because they're under the government."
‘Nadine Dorries seems to know very little’
Ellen says: "Obviously, the decision has been made by Culture Secretary Nadine Dorries, who seems to know very little, considering she thought that Channel 4 was funded by taxpayers money."
How could the BBC be funded in future?
But will the BBC eventually be free to view without a licence, and will it have to begin airing adverts? What does it mean for viewers?
Despite talk of the licence fee being “scrapped”, only the current model is looking to be changed, and it’s unlikely that access to the broadcaster’s content will become entirely free.
Linking the fee to council tax is one option for changing the current system, a move which would see wealthier households pay a higher fee.
A household fee could also be imposed and paid along with other utility bills like gas and electricity.
Former Culture Secretary John Whittingdale has suggested funding the BBC’s basic services comes from a Treasury grant, with viewers then paying a Netflix-style subscription “top-up” for entertainment and sport.
But Chancellor Rishi Sunak is likely to be cautious of any direct support of the BBC from the Treasury, which could raise questions about the broadcaster’s independence from the Government.