Where does the Royal Family get its money from?

Key developments are emerging from the global stage. Where does the Royal Family get its money from? 28 minutes ago Share Save Add as preferred on GoogleGetty ImagesThe first report into royal residences for 20 years has revealed that Andrew Mountbatten-Windsor received rental income from sub-letting three cottages on the Royal Lodge estate. The report, by public spending watchdog the National Audit Office (NAO), also said that the King pays the rent for accommodation in royal palaces for Mountbatten-Windsor's daughters Princesses Eugenie and Beatrice.

The Royal Family receives tens of millions of pounds each year from the Sovereign Grant and uses it to cover the cost of official duties, but this is not the only source of their income. Andrew was sub-letting Royal Lodge cottages, watchdog revealsHow much public money does the Royal Family get? The Sovereign Grant provides public funding for the running costs of the monarchy.

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This includes core staff costs, running expenses of the King's official household including receptions, maintenance of palaces in England and travel costs for royal engagements. For 2026-27, the Sovereign Grant stands at a record £137. 9m, in the second year of a two-year hike to pay for building work at Buckingham Palace.

In 2025-26, it stood at £132. 1m and in 2024-25 it was £86. The grant has more than tripled in real terms since it was introduced, at £31m a year, in 2012.

It brought together public funding into a single payment, replacing a mix of grants from a range of government departments. However, the funds could soon be reduced for the first time. "The government is committed to bringing forward legislation to reset the grant to a lower level from 2027-28 once Buckingham Palace reservicing works are completed," Financial Secretary to the Treasury Lord Livermore told the House of Lords in March.

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The Treasury has said the forthcoming legislation would allow for a cut to the grant for 2027-28, but only as a one-off measure. It is not known how much the reduction would be. Separately, the Royal Household's annual financial statement said additional income increased to £21.

5m in 2024-25, following a record number of visitors to Buckingham Palace. How is the Sovereign Grant worked out? Profits of the Crown Estate - a property business owned by the monarch but run independently - go to the Treasury.

The level of profit is used to calculate the funding given by the government to the Royal Family. The Crown Estate had assets worth £15bn in 2024-25, with billions of pounds worth of properties in London, including Regent Street, as well as nearly half the land along the coast of England, Wales and Northern Ireland. The estate is not the King's private property but belongs to the monarch for the duration of their reign.

The development has drawn wide international attention, with diplomatic circles watching closely.