The BBC have begun formal negotiations over the cost of the TV licence fee from 2022.
Culture Secretary Oliver Dowden has asked the BBC to detail its financial needs in order to inform his assessment of the licence's pricing.
The negotiations will determine how much public funding the BBC and Welsh language channel S4C receive.
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Mr Dowden said: "Public service broadcasting is woven into the cultural fabric of the UK, but to remain relevant and meet people's needs in the digital age it must evolve.
"We are today taking a step forward in our roadmap for reform of the BBC and beginning negotiations to agree the cost of a TV licence from 2022 so that it offers fee payers the best value for money."
PA reports the government expects the television licence fee settlement process to be concluded by autumn next year before coming into force on April 1 2022.
In July, the BBC confirmed it would end free TV licences for most over-75s.
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The change was originally due to be made on June 1, but there was a two-month delay due to the coronavirus pandemic.
Up to 3.7 million people were asked to start paying the £157.50 fee from August 1.
Only low-income households where one person receives the pension credit benefit are still be eligible for a free licence.
The Government is also consulting on proposals to decriminalise non-payment of the licence fee.
