How much does the Royal Family earn?

The Royal Finance Report shows the monarchy have received an extra £45 million from the Crown Estate Profits, due to 6 new offshore wind farms which has increased the revenue for the crown.

The Crown Estate profits have increased to £1.1 billion which will lead to a rise in the Sovereign Grant, the body paying for the Royal Family’s costs.

 

How is the Monarchy funded?

The Monarchy is funded by the taxpayer money accumulated in the Sovereign Grant and given to the Royal family in exchange for the King surrendering the Crown Estate Revenue, of which the Monarchy only gets a percentage of the profits.

The Royal report reveals that the total Sovereign Grant of £86.3million equal £1.39 from each person in the UK.

The Crown Estate goes into the Treasury which then decides an income for the monarchy. The Crown usually receives 25% of the profits, however, last year it was reduced to 12%. The Monarchy grant is reviewed to ensure an appropriate level and income.

The grant directed to the monarchy pays for all official engagements conducted by the Royal Family, maintenance of Palaces and homes which includes paying Royal staff.

The King also receives an income from investments and inheritance which is not made public.

 

How much money has the Monarchy received?

The Crown profits have risen to £1.1 billion, this means their grant will now be rising from £86.3 million in 2024-25 to £132 million in 2025-26.

This grant will pay for all Royal costs.

This extra grant will be used to pay for the last of the restoration on Buckingham Palace. It was also reported in the Royal Financial report that the Monarchy will be purchasing 2 new helicopters to replace their 15-year-old ones which they use to visit locations in the UK for official engagements.

In the year April 2023 to March 2024 the total cost to the Sovereign Grant totalled £800,000 with £600,000 being spent on the coronation and surrounding events.

 

How much money does the Monarchy bring to the UK?

With such a high income you may be wondering what the Royal Family do to have such a high income, especially when the UK is facing a cost-of-living crisis with many facing poverty. Criticism has increased over the past few years towards the Monarchy and the lavish lifestyle they lead.

prince william and catherine middleton, royal wedding london

So, does the Royal Family help the UK’s revenue?

The Royal Family replicate the UK’s history and culture and this is the reason for a large number of tourists to the UK every year. Research suggests that 60% of tourists to the UK are likely to visit areas with significance to the Royal Family and their history, with more than a third listing Buckingham Palace high on their list of things to see.

In 2019-2020 the Royal Estate’s income from ticket admission rose to £49.9 million according to Statista.

Windsor Castle and Frogmore House reported 426,000 paying visitors in the year 2021-22. Visitors paying for tickets bring a great revenue to the UK. This includes not only admission tickets but also retail, hospitality, hotels and more which see an increase due to the attraction of the Royal Family to tourists.

Brand Finance estimates that the Royal Family contribute £2.5 billion to the British economy annually.

So, the Royal Family do contribute a significant amount to the UK but do you think this justifies their generous spending when it comes to their events and lifestyle?