Simone Lawson
The constitutional monarchy has been described as an expensive institution, with Royal finances often shrouded in secrecy and confusion. However, the Royal Household is committed to ensuring that public money is spent wisely and efficiently, with annual reports on Royal finances and expenditure published to improve transparency. The Monarchy's finances include the Sovereign Grant, the Duchies of Lancaster and Cornwall, and tax arrangements for members of the Royal Family. The Sovereign Grant, provided by the government, is the main source of funding for the Monarch's official duties, including the maintenance of Royal residences, Royal travel, and employment costs for Royal Household staff.
| Characteristics | Values |
|---|---|
| Government funding | £86.3 million a year in 2024/25 |
| Sovereign Grant | £86.3 million a year in 2024/25 |
| Civil List | 70% of expenditure went on staff salaries |
| Occupied Royal Palaces | N/A |
| Royal travel | N/A |
| Employment costs for Royal Household staff | About 70% of Civil List expenditure |
| Crown Estate | N/A |
| Duchy of Cornwall | N/A |
| Duchy of Lancaster | N/A |
| Grant-in-Aid | N/A |
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Sovereign Grant
The British government supports the monarch and their family financially through the Sovereign Grant. This grant is intended to cover the costs of the sovereign's official expenditures, including the upkeep of royal residences, staffing, travel and state visits, public engagements, and official entertainment. The Sovereign Grant Act came into force on 1 April 2012, consolidating four funding sources that the monarch received into a single annual payment.
The Sovereign Grant is paid by HM Treasury and is indexed as a percentage of revenues from the Crown Estate and other revenues from the financial year two years prior. The Crown Estate is one of the largest property portfolios in the United Kingdom and is held in trust by the monarch. While it is owned by the monarch in right of the Crown, it is not the personal property of the sovereign and any revenues or debts do not accrue to them.
The initial index percentage of the Sovereign Grant was set at 15% and is reviewed every five years by the Royal Trustees, which include the Prime Minister, the Chancellor of the Exchequer, and the Keeper of the Privy Purse. In 2016, following a review of the percentage of Crown Estate income used to calculate the grant, it was announced that a temporary increase to 25% would fund a £369 million refurbishment of Buckingham Palace. This increase was expected to result in a 66% rise in the grant for 2017-2018, bringing the total amount to £76.1 million. The percentage was set to revert to 15% once the refurbishment was completed in 2027.
Any unspent Sovereign Grant is put into a reserve fund, which is used to meet future commitments and tackle backlogs in property maintenance at the royal palaces. The level of the grant is protected by law from decreasing due to falling Crown Estate revenues, and the legislation ensures that the grant does not rise to a level that would cause the Reserve Fund to exceed half of the annual expenditure. The Keeper of the Privy Purse has overall responsibility for managing the sovereign's financial affairs and publishes annual financial accounts that are audited by the National Audit Office, ensuring accountability.
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Civil List
A civil list is a list of individuals paid by a 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.
In the UK, the Civil List was an annual grant that covered expenses associated with the sovereign performing their official duties, including staff salaries, state visits, public engagements, ceremonial functions, and the upkeep of royal households. The Civil List was abolished under the Sovereign Grant Act of 2011, which received royal assent on 18 October 2011. The last British monarch to receive Civil List payments was Elizabeth II, from her accession in 1952 until the Civil List's abolition in 2012.
The Civil List was originally defined as expenses supporting the British monarchy. Over time, various Civil List enactments were passed, repealed, and replaced, which provided for permanent appropriations of parliament funds to be paid to the Governor-General, Prime Minister, Cabinet Ministers, Members of Parliament, and the judiciary. The Civil List Act of 1837, passed upon Queen Victoria's accession, reiterated the principles of the civil list system and specified that all prior Acts were in force.
The abolition of the Civil List was announced in the House of Commons on 20 October 2010 by the Chancellor of the Exchequer, George Osborne, who stated that "the Royal Household will receive a new Sovereign Support Grant linked to a portion of the revenue of the Crown Estate". The Crown Estate is a statutory corporation run on commercial lines by the Crown Estate Commissioners and generates revenue for HM Treasury every year.
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Royal residences
The monarchy has been described as an expensive institution, with royal finances being criticised for their lack of transparency. However, the royal household claims to be committed to spending public money wisely and efficiently and making royal finances as transparent and understandable as possible.
The royal family's main source of income is the Sovereign Grant, which is funded by a percentage of the profits of the Crown Estate revenue. The Crown Estate is a property business worth £16.5 billion in assets in 2022, including properties in London and nearly half the land along the coast of England, Wales, and Northern Ireland. The monarch technically owns the Crown Estate, but it is run independently, and the profits go to the Treasury. The level of profit is used as a benchmark to calculate the funding given by the government to the Royal Family. The Occupied Royal Palaces, which are used for formal entertaining and ceremonial events, are funded by the Sovereign Grant.
The Royal Collection Trust, which maintains the queen's public residences, generates a lot of money annually. The Trust reinvests income received from ticket sales and retail outlets. The King also privately owns properties such as Sandringham and Balmoral.
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 Duchy of Lancaster includes 18,481 hectares of land in England and Wales, comprising commercial, agricultural, and residential properties. The Duchy of Cornwall funds the official activities of William and Kate, and Meghan and Harry.
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Royal travel
The British Royal Family's travel is funded by taxpayers through the Sovereign Grant. The Sovereign Grant is an annual grant that funds the King's official duties and replaced the Civil List and the three Grants-in-Aid in 2012. The Grants-in-Aid covered Royal Travel, Communications and Information, and the Maintenance of the Royal Palaces. The Sovereign Grant is funded by a percentage of the profits of the Crown Estate revenue, which is land managed on behalf of the government. The Crown Estate is owned by the monarch but managed independently, with revenues given to the government. The monarchy receives 12-15% of Crown Estate profits. The Sovereign Grant is also not the King's only source of income, as he also has private income from investments and inherited wealth.
The Royal Family brings tourism to the UK, with the Centre for Economics and Business Research estimating that the coronation weekend generates an estimated capital value of £67.5 billion. The House of Windsor, with a valuation of £19 billion, played an important role in the UK economy, with a gross uplift of £1.76 billion in 2022. Travel and tourism play a significant role in the UK's economy, with an estimated £237.1 billion contributed to the GDP in 2022.
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Royal household staff
The Royal Household of the United Kingdom is an organisation that provides support to the British royal family. Its chief duties include assisting the monarch in their role as head of state, organising public ceremonies involving the royal family or royal residences, and maintaining and presenting the Royal Collection. The Royal Household includes the royal family, a large staff of domestic servants, military personnel, priests, clerks, and other officials.
The Royal Household has its roots in the comitatus that provided military support to early Anglo-Saxon kings. In addition to the king, the household included noble thegns, who could be promoted to higher office. The highest-ranking officers were: Discthegns, who were in charge of food provisions; Burthegns, bedthegns, and hræglthegns, who were chamberlains that supervised the royal bedchamber and wardrobe; Byrelas, who were butlers; and stallers, who were close to the king and very wealthy, and who supervised the housecarls (royal bodyguards).
The chamber was the main financial office of the government, led by the master chamberlain, lesser chamberlains, and other officials. The chamber had two divisions: the royal bedchamber and the chamber of the court, which handled the finances. The hall was led by four stewards who served in rotation and performed primarily ceremonial duties, such as serving the king dishes at banquets. The buttery was led by the butler, and the outdoor staff included huntsmen, houndsmen, and foresters.
The size of the Royal Household varies, from the large household that supports the sovereign to the smaller household of the Prince and Princess of Wales. The sovereign's household also includes representatives of other estates of the realm, including the government, the military, and the church.
The Royal Household has been criticised for paying staff salaries lower than the living wage. In 2022, the royal family responded to a report by Insider, denying the claims and stating that the report contained "glaring inaccuracies and outdated information". The royal family's job postings have included salaries "starting below the living wage recommended by the Living Wage Foundation". For example, some roles were advertised at a rate of £10.90 per hour, which was the UK living wage in 2022. However, it is important to note that the royal family's estimated net worth of $28 billion does not mean that their employees are earning high six-figure salaries.
In the 2021-2022 fiscal year, the Crown Estate saw over $377 million in profits, 25% of which went to the Sovereign Grant, a fund designated to cover official expenses such as payroll for royal family staff, security, housekeeping, and travel. For that fiscal year, over $62 million was designated for funding the operating costs of the Queen's household.
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Frequently asked questions
The Sovereign Grant is the name of the system of funding for the constitutional monarchy, which has been in place since 2012/2013. It replaced the Civil List and three Grants-in-Aid. The Grant includes funding for the maintenance of Royal residences, Royal travel, and employment costs for Royal Household staff. In 2024/25, the Grant was £86.3 million.
The Civil List was the fixed annual payment provided by the government to meet the official expenses of the Monarch's Household until 2012. About 70% of the Civil List expenditure went on staff salaries, and it also contributed to the costs of official functions.
The Crown Estate is a portfolio of land that is managed on behalf of the government. It is not the personal property of the monarch, and any profits from it go to the Treasury. The Crown Estate dates back to the Norman Conquest.
The Royal Household is committed to ensuring that public money is spent wisely and efficiently, and to making Royal finances transparent and comprehensible. It publishes a summary of Head of State expenditure and a full report on Royal public finances annually.
