Introduced under the Sovereign Grant Act 2011, the fund is calculated based on 15% of profits from the Crown Estate (a property empire owned by the monarch but managed by the Treasury). Any surplus from previous years is placed in the Reserve for future use.
Despite the large figure, royal expenses are extensive. In the 2023–2024 financial year, the Royal Family spent £89.1 million. This included:
- £27.9 million on payroll
- £47 million on property maintenance
- £4.2 million on travel
- £2.6 million on housekeeping and hospitality
- Plus additional spending on utilities, digital services, and more
To make up the shortfall, they drew £2.8 million from the Reserve. Reports suggest the grant may increase by 53% next year, reaching £130 million, partly to fund palace upkeep and new helicopters.
Beyond public funds, the royals earn income through the Duchy of Lancaster (supporting the King’s private expenses via the Privy Purse) and the Duchy of Cornwall (funding the Wales household). Both are taxed.
There’s also the Royal Collection, a valuable national art archive held in trust by the Sovereign.
In return, the monarchy reportedly contributes far more to the UK economy than it receives. A Regional Studies report valued the monarchy as a business at £67.5 billion, with an estimated annual economic contribution of £1.766 billion.
The Royal Family’s website notes their contributions go beyond finances. The Sovereign serves as “a focus for national identity, unity and pride,” offering a sense of continuity, recognising achievements, and promoting volunteerism.
Still, public frustration remains—especially when royal job wages seem out of step with their wealth and the costs funded by taxpayers.
