King Charles is set to receive a significant pay rise of up to 50% of his annual official income.
Sovereign Grant Pays for Official Duties
The taxpayer-funded settlement is the Sovereign Grant, which the UK government pays annually to the Royals to support the monarchy’s official duties.
Sovereign Grant to Be Reassessed
The Sovereign Grant will be reviewed in 2026/7 to reassess whether the amount handed over is deemed “appropriate level.”
Sovereign Grant up 5%
From 2022-2023, the Sovereign Grant was worth £86.3m, the same as the previous year. Still, due to Buckingham Palace’s 10-year refurbishment plan of £369m, inflation and the costs linked to King Charles succeeding Queen Elizabeth, a 5% increase on the £102.4m spent the previous year was noted.
Crown Estate Profits Go to Treasury
Profits of the Crown Estate, a property owned by the monarch but run independently, go to the Treasury.
Profit Level Determines Fund From Government
The profit level from the Crown Estate is used as an indicator to calculate how much money the government will give the Royal Family.
Sovereign Grant to Rise in 2025/6
The highest profits of £1.1bn from the crown estate mean that the sovereign grant will rise from £86m in 2024/5 to £132m in 2025/6.
53% Rise in Income
The annual accounts show that the monarch will receive a significant funding boost of £45m, with a staggering 53% rise in the official yearly income in 2025/6.
Monarch Given 12%
The monarchy currently receives 12% of the crown estate profits to fund its work and the refurbishment of the Buckingham Palace.
Offshore Wind Deals Expected to Profit
Last year, it was announced that the Crowns Estate’s net profits would be dropped from 25% to 12% due to the rising income expected from the estate’s offshore wind deals.
Wind Profits to Benefit the Public
It was revealed that the king had asked for the wind farm profits to be used for the greater good of the public.
Refurbishment Plan Set to Be Complete in 2027
The increase in the sovereign grant will be used to complete the refurbishment plan and have it finished by 2027.
Kings Keeper Backs Funding Increase
Michael Stevens, the king’s Keeper of the Privy Purse, said the significant increase in the sovereign grant “will be used to fund the final stages of Buckingham Palace reservicing programme.”
Grant Reduction After Reservicing
Once the Buckingham Palace renovations are complete, the sovereign grant will be reassessed as part of the royal trustees’ review in 2026/7 to reduce it.
Government Acts as Safety Net for Monarch
Under the Sovereign Grant Act 2011, if the Crown Estate profits plummeted, the monarch would still receive the same amount as the year prior, and the government would make up the difference in costs.
Accounts Delayed Due to Election
Buckingham Palace’s annual accounts, which covered the king’s first financial year in reign, were delayed for publishing for one month due to the election.
Increased Based on Several Factors
Charle’s increased income is based on several factors, such as the doubling of profits for the Crown Estate and the national portfolio of historical and commercial landholdings, which increased from £443m to £1.1bn in 2023/4.
Featured Image Credit: Shutterstock / Simon Ward Photography.