LONDON — King Charles III’s monarchy is poised to receive a salary increase exceeding £45 million ($60 million), marking a 53% rise in its official annual income, according to reports, amid Britain’s deepening cost of living crisis.
The Sovereign Grant, which funds royal expenditures, will escalate from over £86 million ($110 million) in 2024-25 to about £132 million ($170 million) in 2025-26, driven by robust profits from the Crown Estate, a vast collection of U.K. land and property.
Taxpayer-funded, the Sovereign Grant supports monarchial duties, official travel, thousands of engagements, royal staff, and the upkeep of occupied palaces. It is based on a share of the Crown Estate’s profits, managed independently with assets including prime London real estate.
A separate Crown Estate report released Wednesday revealed profits of £1.1 billion ($1.4 billion).
The grant’s increase will aid in completing Buckingham Palace’s £369 million ($475 million) decade-long renovation project, now in its eighth year. The monarch also implemented sustainability measures like solar panels at Windsor Castle and increased use of sustainable aviation fuel for royal flights. The household anticipates delivery of two new helicopters to replace aging aircraft, crucial for official engagements by His Majesty and other royals.
The grant undergoes a legislative review every five years, with the next scheduled for 2026-27 to ensure funding remains ‘appropriate’ for the royal family.
In addition to the Sovereign Grant, King Charles receives income from the Duchy of Lancaster’s Privy Purse, while the Prince of Wales benefits from net profits from the Duchy of Cornwall. Both incomes are independently audited, though private investments and inherited wealth remain undisclosed.
Though not legally obligated, the monarch voluntarily pays income tax since 1993 on duchy income and personal investments. Approximately £600,000 ($775,275) from the 2023-24 Sovereign Grant funded the king’s coronation and related events during a challenging year that saw diagnoses of cancer for both Charles and Princess Kate.
While the anticipated funding increase drew social media criticism amidst widespread economic hardship, with some commentators highlighting stagnant wages, rising living costs, child poverty, and homelessness rates.
Economic concerns, including inflation and living costs, were pivotal in the Labour Party’s recent electoral success, ending a 14-year Conservative government tenure.
Graham Smith of Republic, an anti-monarchy advocacy group, contrasted the monarchy’s costs with Ireland’s President Michael Higgins, noting Higgins’ significantly lower cost and accountability through election.
“We do not owe the royals a living, palatial homes, private helicopter travel, or lives of luxury,” Smith asserted.”
