Eleanor Finch
A constitutional monarchy is a system of governance in which a monarch acts as a non-party political ceremonial head of state under a constitution, typically without directly setting public policy or choosing political leaders. While the role of the monarch is largely ceremonial, they may retain certain formal powers and play an important political role. The funding for constitutional monarchies comes from a variety of sources, including government support, known as the Sovereign Grant in the UK, which covers the costs of official duties, residences, travel, and staff. This funding is linked to the profits from the Crown Estate, a portfolio of land. The monarch does not receive a wage for their work, and the role is considered to be a figurehead that represents the people, with a potential check on the power of politicians.
| Characteristics | Values |
|---|---|
| Government financial support | £86.3 million a year in 2024/25 |
| Sovereign Grant | £40 million in 2015/16 |
| Royal Assent to legislation | N/A |
| Dissolution of parliament | N/A |
| Reserve powers | N/A |
Explore related products
Sovereign Grant
The Sovereign Grant is an annual payment made by the British government to the monarch to fund their official duties and expenses. The grant was introduced in 2012, consolidating different sources of financial support, including the long-standing Civil List, into a single payment. The Civil List was an arrangement where the monarch received payments from the House of Commons in exchange for surrendering the hereditary revenues of the Crown Estate (the royal property portfolio).
The Sovereign Grant is calculated as a percentage of the revenues from the Crown Estate and other revenues from the financial year two years earlier. Initially set at 15%, the percentage is reviewed every five years by the Royal Trustees (the Prime Minister, the Chancellor of the Exchequer, and the Keeper of the Privy Purse). In 2016, the percentage was temporarily increased to 25% for a period of 10 years to fund a £369 million refurbishment of Buckingham Palace, with the grant set to revert to 15% in 2027 when the project is expected to be completed.
The Sovereign Grant covers various expenses, including the maintenance of occupied Royal Palaces used for formal entertaining and ceremonial events, royal travel for official engagements, and employment costs for Royal Household staff. Any unspent grant is put into a reserve fund, which is subject to a cap of half the level of annual expenditure. The grant is linked to the profits of the Crown Estate but is protected by law from decreasing as a result of falling Crown Estate revenues. The Treasury has also committed to making up any shortfall in the grant value due to decreases in Crown Estate revenues.
Representative Democracies vs Constitutional Monarchies: Key Differences Explained
You may want to see also
Civil List
A civil list is a list of individuals to whom money is paid by the government, typically for service to the state or as honorary pensions. The term is especially associated with the United Kingdom and its former colonies and dominions. It was originally defined as expenses supporting the British monarchy.
In the United Kingdom, the Civil List was, until 2011, the annual grant that covered some expenses associated with the Sovereign performing their official duties, including staff salaries, state visits, public engagements, ceremonial functions, and the upkeep of the Royal Households. The Civil List was fixed at £9.7 million per annum until 2011, with about 70% of the expenditure going towards staff salaries. The Civil List was abolished under the Sovereign Grant Act 2011, which consolidated the funding provided to support the official duties of the Monarch and the maintenance of the Occupied Royal Palaces.
The last British monarch to receive Civil List payments was Queen Elizabeth II. During her reign, the Civil List was used to defray some of the official expenditure of the monarchy. Only the Queen, the Duke of Edinburgh, and the Queen Mother received direct funding from the Civil List. Prince Philip was the only member of the Royal Family to receive an annuity from the Civil List of £359,000 per year.
The Civil List has a long history in the United Kingdom, with the Civil List Act of 1837 passed upon the accession of Queen Victoria, reiterating the principles of the civil list system. The term "Civil List" remained in use even as the nature of the grant changed, with George V deciding to eschew the £50,000 due to him from the Civil List during the Great Depression.
The Monarchy: Limited Power, Constitutional Change
You may want to see also
Royal residences
The Royal Family's residences are funded by the Sovereign Grant, which is provided by the government. The grant covers the maintenance of royal residences, known as the Occupied Royal Palaces, which are used for formal entertaining and ceremonial events. These residences include Buckingham Palace, St James's Palace, Clarence House, and Windsor Castle. The grant also includes funding for royal travel and employment costs for royal household staff.
The Occupied Royal Palaces are not part of the Crown Estate but are owned by the monarch. The Crown Estate is a portfolio of land and properties valued at £15.6 billion in 2022, including almost £8 billion of properties in London. While the monarch does not directly profit from the Crown Estate, the profits are used as a benchmark to calculate the Sovereign Grant.
In addition to the Sovereign Grant, the King also receives income from the Duchy of Lancaster, a landed estate consisting of 45,000 acres of land in England and Wales, valued at £650 million. The Prince of Wales receives income from the Duchy of Cornwall, another landed estate. The two Duchies are independently audited and subject to various Acts of Parliament.
The King also privately owns properties such as Sandringham and Balmoral, which are not part of the Crown Estate or the Occupied Royal Palaces. These properties are funded by the Royal Family itself.
The Royal Family's residences are a significant expense, with the Sovereign Grant for 2024-25 set at £86.3 million. However, the true cost of the Royal Family is likely much greater, including security arrangements and other additional costs.
Hereditary Succession in Constitutional Monarchies: Examining the Tradition
You may want to see also
Explore related products
Royal travel
In addition to the Sovereign Grant, the King receives income from the Duchy of Lancaster (a landed estate), while the Prince of Wales receives net profits from the Duchy of Cornwall. The two Duchies are independently audited and subject to various Acts of Parliament. The King also derives private income from investments and inherited wealth, which is not made public. There is no legal obligation for the King or Prince of Wales to pay tax, but since 1993, the Monarch and their heir have voluntarily paid income tax on income from the Duchies and earnings from personal investments but not on the Sovereign Grant.
The Royal Household is committed to ensuring that public money is spent as wisely and efficiently as possible, and to making Royal finances as transparent and comprehensible as possible. Each year, the Royal Household publishes a summary of Head of State expenditure, together with a full report on Royal public finances. These reports can be downloaded from the Media Centre on the Royal Family's website.
The monarchy also brings in revenue through tourism and trade. For example, there was a 28% increase in Eurostar train bookings to the UK before the Duke and Duchess of Cambridge's royal wedding. The royal brand also supports UK products through royal warrants (trademarks granted by the royal family) and by supporting a brand of 'Britishness', with the royal family sometimes functioning as ambassadors by attending industry events internationally.
Absolute & Constitutional Monarchies: Similarities & Shared Traits
You may want to see also
Employment costs
The British Monarchy cost £40 million in 2015/16, and the Queen does not receive a wage for her work. The costs of a constitutional monarchy are covered by the government, which has provided financial support to the monarch for centuries. This support is known as the Sovereign Grant, as provided for under the Sovereign Grant Act 2011. The Grant includes funding for employment costs for Royal Household staff who support the work of the King or Queen as the head of state. The Grant is linked to the profits from the Crown Estate, a portfolio of land.
The employment costs of the Royal Household staff are covered by the Sovereign Grant, which is provided by the government. The Royal Household includes a wide range of staff members who support the monarch in their duties, such as the Royal Collection Trust, the Royal Household, and the Privy Purse. These staff members have a variety of roles, including but not limited to:
- Supporting the monarch in their official duties and engagements
- Maintaining the Royal residences, including the Occupied Royal Palaces used for formal entertaining and ceremonial events
- Assisting with Royal travel for official engagements in the UK and overseas
- Providing administrative and clerical support
- Managing the monarch's schedule and communications
The number of staff members employed by the Royal Household varies depending on the needs of the monarch and the Royal Family. Some staff members are employed full-time, while others may be employed on a part-time or contractual basis. It is also important to note that the Royal Household staff are not considered civil servants and are employed directly by the monarch.
The employment costs of the Royal Household staff are a significant expense for the Sovereign Grant. The exact amount allocated for employment costs is not publicly available, but it is included in the overall grant amount, which was £86.3 million a year in 2024/25. The grant is reviewed every five years and is subject to scrutiny by Parliament and the National Audit Office to ensure that the spending is accountable and appropriate.
Russia's Monarchy: A Constitutional Past?
You may want to see also
Frequently asked questions
The government provides financial support to the monarch. In the UK, this is known as the Sovereign Grant, which includes funding for the maintenance of royal residences, royal travel, and employment costs for royal household staff.
The Sovereign Grant is the financial support provided by the government to the monarch. It was introduced to consolidate different sources of financial support and improve the accountability of spending on the monarch's official duties. The level of the Grant is linked to the profits from the Crown Estate, a portfolio of land.
The amount of money a constitutional monarchy makes can vary depending on the country. For example, the British monarchy cost £40 million in 2015/16, while the Dutch monarchy cost £31 million, and the Norwegian monarchy cost £17.2 million.
Yes, in addition to the Sovereign Grant, there are also the Duchies of Lancaster and Cornwall, which provide additional income for the British monarchy.
Constitutional monarchies are argued to have several benefits over other forms of government, including providing a figurehead that represents the people, improving social trust, and reducing crime and corruption. Additionally, constitutional monarchies can provide a check and balance on the political system and temper the ambition of politicians.
