The BBC licence fee will be abolished in 2027 and the broadcaster’s funding will be frozen for the next two years, the government has said, in an announcement that will force the corporation to close services and make further redundancies.

The culture secretary, Nadine Dorries, is expected to confirm that the cost of an annual licence, required to watch live television and access iPlayer services, will remain at £159 until 2024 before rising slightly for the following three years.

She said this would be the end of the current licence fee funding model for the BBC, raising doubts about the long-term financial future and editorial independence of the public service broadcaster under a Conservative government.

Dorries said: “This licence fee announcement will be the last. The days of the elderly being threatened with prison sentences and bailiffs knocking on doors are over. Time now to discuss and debate new ways of funding, supporting and selling great British content.”

The decision, confirmed by government sources, was briefed to the media as part of a range of measures designed to shore up public support for Boris Johnson after he has faced calls to resign as prime minister.

The BBC will have to negotiate with the government over an entirely new funding model when the final licence fee funding deal expires in 2027 – with potential options including a subscription service, part-privatisation, or direct government funding.

The Mail on Sunday quoted an ally of Dorries as saying: “There will be a lot of anguished noises about how it will hit popular programmes, but they