Ministers will launch a consultation into whether failing to pay the BBC licence fee should stop being a criminal offence.
Under the Government’s plan, non-payment would be downgraded to a civil debt.
Enforcement would be made by TV Licensing through civil courts.
Bailiffs could be called in – similar to when electricity bills are unpaid.
Currently, failure to stump up for the £154.50 licence fee can result in prosecution and a £1,000 fine. Not paying the fine can lead to a jail term.
In the run-up to the general election, Boris Johnson said he was “looking at” abolishing the licence fee altogether.
His senior aide, Dominic Cummings, wants to reshape the broadcaster, which he has branded the “mortal enemy” of the Tory party.
Culture Secretary Nicky Morgan will say: “Many consider it wrong you can be imprisoned for not paying your TV licence and that its enforcement punishes the vulnerable.”
The BBC has warned decriminalisation could cost it £200million a year.
A BBC spokesman said: “Of course it is important that any system commands public respect and we hope that any debate about the future is based on the evidence.
“And if there are changes, they must be fair to law abiding licence fee payers and delivered in a way that doesn’t fundamentally undermine the BBC’s ability to deliver the services they love.
“We have a settlement agreed with the Government and any substantial changes to the BBC’s income should be considered as part of the next licence fee settlement.”
Shadow Culture Secretary Tracy Brabin said the BBC is “under serious threat from this government”. Ministers will also reveal a new payment scheme to help vulnerable people struggling to afford the licence.
Age UK fears some people will “inadvertently break the law [as] they will be unable to comply with any new charging regime”.
It called this a “disgrace” and said it is irrelevant if the “consequences are criminal or civil”.
The Tories have been slated for their role in the BBC axing free licences for over-75s.
