Public funding for royals triples since 2012 because of Palace works
Public funding for the Royal Household has tripled in real terms since 2012, official figures show, with the rise driven largely by repairs and building work at Buckingham Palace.
The Sovereign Grant, which provides taxpayer support for the monarchy, was introduced in 2012 at £31m per year. That has now risen to £132m, data from the House of Commons Library shows, and once inflation has been taken into account, that represents about a threefold increase.
The grant rose 53% in April, from £86.3m to £132.1m. Royal aides say this was because of a Buckingham Palace building project and the grant will come down again, adding that the monarchy represents good value.
Lord Turnbull, a crossbench peer and a former Cabinet Secretary, called the way the grant was calculated "complete and utter nonsense" but said that the budget isn't high compared with other presidential heads of state.
The Sovereign Grant provides funding for the official duties of the monarchy. In the most recent figures, for 2023-24, the biggest items were property maintenance and staff payroll, with smaller amounts for travel and hospitality and housekeeping.
The analysis by the House of Commons Library shows how much the Sovereign Grant has risen over time - using a measure that takes into account inflation, with comparisons using 2023-24 values as a benchmark.
Using that measure, the Sovereign Grant in 2012-13 was worth £41.5m – which rose to almost £100m in 2018-19, to cover renovations in Buckingham Palace, and then rose in 2025-26 to being worth £129.3m, again for work on Buckingham Palace.
A Bank of England inflation calculation also shows the grant's value having trebled since 2012, although Buckingham Palace uses a separate figure which is slightly below a threefold real-terms increase.
Buckingham Palace says the current figures are higher because of a 10-year, £369m project to modernise facilities in the Palace, including cabling, plumbing, wiring and lifts. It's a project that the National Audit Office says has been well-run and delivers "good value for money".
The Palace says it's misleading to compare this year's figures with earlier levels of grants. They say the big increase is due to the element of the grant that pays for Buckingham Palace building works, rather than the "core" grant for other running costs.
"The Sovereign Grant remained virtually flat for five years from 2020, during a period of high inflation. The majority of the increase in this year's Sovereign Grant is to fund the Buckingham Palace Reservicing Programme, which is ensuring that the Palace, a national asset, is accessible and protected from fire and flood," said a Palace spokesperson.
"A temporary increase in the grant across two years was approved to provide the remainder of the funding agreed in 2016 for this reservicing work. It has always been anticipated that the level of the Sovereign Grant will drop once the project is completed," said the spokesperson.
This could mean taxpayer funding reducing after 2027.
The sharp increase over the past decade has been during difficult years for public finances, including periods of austerity and tight controls over budgets.
For example, a report from the Institute for Fiscal Studies showed that public spending on education in England went down by 11% in real terms between 2010-11 and 2023-24, although the IFS says that it is difficult to compare such big multi-billion budgets with changes in relatively smaller amounts such as the Sovereign Grant.
Before the Sovereign Grant was introduced, state funding for the monarchy came through a mix of grants, government department spending and a "civil list" payment.
Figures from the House of Commons Library, going back to 1995, show the pre-Sovereign Grant totals as lower than than they are today - for instance, using 2023-24 values, it was worth £67m in 2000 and £56m in 2005.
What does King Charles do?
King sends heartfelt message to fellow cancer patients
The Sovereign Grant was introduced as a more "modern, transparent" way of bringing together royal funding, presented to MPs in 2011 as being likely to reduce the royal income.
The grant is based on a percentage of the profits of the independent property and landowning business, the Crown Estate. The grant is not from the Crown Estate, it comes from the Treasury, but the Crown Estate is used as a benchmark.
Sovereign Grant was initially set at 15% of Crown Estate profits, which rose to 25% to cover the cost of renovating Buckingham Palace.
It's now being reduced to 12%. But because of increased profits for the Crown Estate from selling leases for offshore wind farms, the actual cash amount has risen sharply, because it's a percentage based on a much bigger total.
The increase in the Sovereign Grant's value is blamed by former Lib Dem Home Office minister Norman Baker, a prominent critic of royal finances, on what he calls the "completely absurd" way it's calculated and "weak-kneed" governments that don't want to challenge it.
"The Royal Family has been very efficient in persuading the public purse to keep coughing up more money," he says.
"Buckingham Palace has been used again and again to justify the increases.
"We're told public finances are tight, we can't afford a winter fuel allowance, but we can pay for an increase for the Royal Family. It's completely wrong."
Lord Turnbull, a former Cabinet Secretary and Permanent Secretary at the Treasury in the 1990s and 2000s, is also critical of the way the grant is calculated. He says successive governments have used the Crown Estate calculation as a convenient way of avoiding debate and stopping a "lot of bolshy backbenchers moaning about the cost of the monarchy".
He says it would be much better to have a straightforward grant to pay for the monarchy, which could be debated on its own merits.
But he also says it's a "red herring" to focus on the headline increase in the Sovereign Grant, when that figure has been driven by work to preserve Buckingham Palace, rather than underlying running costs. He says that if you have a monarchy it has to be properly funded. "You either have one or you don't," says Lord Turnbull.
Pauline Maclaran, a royal commentator from Royal Holloway, University of London, says the monarchy "generates a great deal of money and goodwill."
This is often seen in terms of boosting tourism and promoting business links, but Prof Maclaran says increasingly it needs to recognise the impact of royal "soft power".
US President Trump is a self-professed fan of King Charles and if those warm feelings helped with UK and US trade and tariff negotiations the benefits would hugely outweigh any annual costs of the monarchy, says Prof Maclaran.
But the royals can't be immune to questions about finances, she says: "The public wants to know if they're of value."
Royal expert Richard Palmer says this year's increase has "raised eyebrows".
"Of course the head of state and those who support him need to be funded properly, but so do other parts of the state - the health service, schools, the military, for example," says Mr Palmer.
Royal sources say there is transparency and funding is subject to the approval of Parliament. The Royal Trustees overseeing the grant are the prime minister, chancellor and the keeper of the privy purse, who looks after the monarch's finances.
You can dig into the accounts and see from 2023-24 that the royals spent over £1m on helicopter flights, there was an electricity bill of £2.2m and that travel for the Duke of Kent over three days to attend regimental events in Scotland cost more than £23,000.
There are also details of what the monarchy provides in a year – including hosting 400 events, inviting 105,000 guests to receptions, garden parties and official lunches. There were also 2,300 public engagements, supporting charities and good causes.
There are national and international events, including state visits which help to promote UK trade. There's a constitutional role, such as the state opening of Parliament and regular meetings with the prime minister.
Republic, a group campaigning for an elected head of state, have argued that other costs need to be included, such as security, which is not covered by the Sovereign Grant.
They also want the Duchies of Lancaster and Cornwall to count as public funding, rather than private incomes for the King and Prince of Wales. A report from the group claims that the total cost of the monarchy is about £510m per year.
Opinion polls suggest the monarchy remains popular, with a YouGov survey in February 2025 suggesting 55% viewed the monarchy positively compared with 36% who saw it negatively.
But there is less certainty about funding. Another YouGov survey in December 2024 suggested strong public opposition to government money being spent on Buckingham Palace – by 56% to 29%.
And there are divisions by age groups – with 74% of the over-65s thinking the royals are good value for money, compared with 44% of 25 to 49 year olds.
Harry and Meghan call for stronger social media protections for children
Princess Charlotte photo released to mark 10th birthday
King and Queen to host VE Day tea party for war veterans
Sign up here to get the latest royal stories and analysis every week with our Royal Watch newsletter. Those outside the UK can sign up here.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
43 minutes ago
- Yahoo
Farfetch Supercharges Advertising Service for Brands on the Platform
LONDON — Under new owner Coupang, Farfetch is expanding and ramping up support for the brands on its platform with the relaunch of its in-house advertising business. WWD has learned that the business, known until now as Media Solutions, is relaunching as Farfetch Advertising. The aim is to give regional brands the opportunity to reach a wider audience, and global brands the potential to accelerate their growth. More from WWD Farfetch Pushes Into South Korea, One of the World's Biggest Luxury Markets The Grand Tour Is Back. Are You Invited? Ambush Founders Buy Back Majority Stake From New Guards Group An announcement is expected today. Farfetch argues that optimizing for specific markets and using targeted marketing techniques can drive a 'significant performance uplift' across all companies and product categories. The fashion e-commerce platform said brands such as Versace, Dolce & Gabbana, Essential Antwerp and Boggi Milano have already witnessed 'measurable benefits' in terms of traffic and return on ad spend. Like its predecessor Media Solutions, Farfetch Advertising is a paid-for service available to current partners and brands, and others outside the Farfetch ecosystem looking for increased visibility. Farfetch said the relaunched advertising platform has been designed to address marketing challenges unique to the luxury industry, 'such as understanding the complex path to purchase, building brand equity and ensuring brand safety.' Caroline Cochin de Billy, vice president supply partnerships at Farfetch, said the company is 'committed to providing our partners with a service that enables them to truly stand out. Our advertising solutions are a gateway to access untapped customer segments and drive measurable uplift within a strictly luxury environment.' Emanuele Bicocchi, founder and chief executive officer of the eponymous Milan-based jewelry brand, said the Farfetch ad service has 'allowed us to increase global awareness and communicate who we are in markets where we have no physical presence or wholesale partners, such as Mexico, Brazil and Australia. We've been able to reach a more diverse audience and share a more inclusive, genderless vision.' Timex Group said its recent campaign for Versace watches helped it drive 'meaningful brand engagement and visibility during a key sales period. The versatility of the campaign, particularly through sponsored products and social amplification, delivered measurable results and outstanding return on investment.' The enhanced service is being launched alongside a dedicated website that gives brands direct access to the Farfetch ad team. Coupang has been moving quickly to fortify Farfetch after purchasing the company out of administration at the end of 2023. Earlier this month the company announced plans to push into South Korea, one of the world's hottest luxury markets, through an integration with the app, Coupang's luxury vertical in the country. Farfetch said it wants to leverage the local services and operational network in the region, where its business is still small. On Coupang's watch, Farfetch achieved revenues of $1.7 billion in 2024, while losses narrowed to $34 million. In February, Coupang said the business was on a 'positive trajectory,' and turned a profit in the fourth quarter. There are currently 1,400 brands, boutiques and department stores on the Farfetch platform, which serves customers in more than 190 countries and territories. The site has 40 million monthly unique users and the company said most of them are Gen Z and Millennials. Best of WWD Longtime Vogue Editor Grace Mirabella Dies at 91 First Lady Dr. Jill Biden Helps Forbes Celebrate Its 50 Over 50 List Mikaela Shiffrin Gets Personal in New Series for Outside+ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
43 minutes ago
- Yahoo
Palestine Action to be banned after RAF base break in
The home secretary will move to proscribe Palestine Action group in the coming weeks, effectively branding them as a terrorist organisation, the BBC understands. Yvette Cooper is preparing a written statement before Parliament on Monday - which if passed will make becoming a member of the group illegal. The decision comes as a security review begins at military bases across the UK, after pro-Palestinian activists broke into RAF Brize Norton in Oxfordshire and sprayed two military planes with red paint. Prime Minister Sir Keir Starmer condemned the action as "disgraceful," describing it as an "act of vandalism". South East counter terrorism police confirmed its specialist officers were investigating the incident alongside Thames Valley Police and the Ministry of Defence (MoD). Counter-terrorism police added the incident happened in the early hours of Friday and that enquiries were "ongoing to establish the exact circumstances". Footage posted online by Palestine Action on Friday showed two people inside the Oxfordshire airbase in darkness, with one riding on a scooter up to an Airbus Voyager and spraying paint into its jet engine. After sharing the footage, a Palestine Action spokesperson said: "Despite publicly condemning the Israeli government, Britain continues to send military cargo, fly spy planes over Gaza and refuel US and Israeli fighter jets." The group claimed its activists had evaded security and had put the air-to-air refuelling tankers "out of service". However RAF engineers have been assessing the damage, with a defence source earlier telling the BBC that they did not expect the incident would affect operations. Thames Valley Police earlier said it had received a report about people gaining access to the base and causing criminal damage. "Inquiries are ongoing to locate and arrest those responsible," the force said. It is understood this incident was not the first time the group has targeted military sites. RAF Brize Norton serves as the hub for UK strategic air transport and refuelling, including flights to RAF Akrotiri in Cyprus. The air force has conducted reconnaissance flights over Gaza out of the Cyprus base.
Yahoo
an hour ago
- Yahoo
Do solar panels perform better in a heatwave?
The sun is out, mercury is rising and keeping cool is on the minds of most people. If you have solar panels, you might be wondering if the heatwave could hand you a tidy bonus in the way of more free electricity to use yourself – maybe to keep an air conditioner going, or at least a fan – or to sell back to the grid. Longer days do mean more solar power since sunlight will be hitting your panels and generating power for more time. The bad news is that high temperatures can actually lower your generation with solar panels. The good news is that it isn't by much in Britain. Modern solar panels will work from minus 40 degrees Celsius to 85 degrees, according to the trade body Solar Energy UK, and they generally work best at 25 degrees or below. For each degree you go up from 25 degrees, you lose about 0.34-0.5 percentage points of power, depending on the quality of the cells. That means at 40.3 degrees, Britain's all-time record, set on 19 July 2022, good panels were operating at about 5 per cent below their best. In direct sunlight, panels can get much hotter than air temperature, of course, but even at 85 degrees, they would only lose about 20 per cent of their power. When temperatures did hit that record, the commercial solar sector performed well. Over the course of that day, solar provided 8.6 per cent of the UK's electric power needs compared to 9 per cent for the previous seven days, suggesting only a small drop off. Heatwaves in the UK are likely to become longer and hotter due to global heating, according to the Met Office. If you have space to install them, use electricity during the day, own your home, plan on staying there and are up for doing a little homework, then the answer is probably yes. It can take up to 13 years to get a return on your solar panels, but this number can be slashed if you have a south-facing roof, live further south, use your savings to buy them rather than borrowing and paying interest, and use power during the day. Solar panels can also last for 30 years. There are a lot of variables to account for. In the below table, we are using an address in London, assuming a family of three and typical use (no heat pumps, high daytime usage or electric car charging). Other assumptions include no shade on the panels and that someone is in, using power for about half the day and an export price of 15 pence per kilowatt hour. Other than a new inverter, no other maintenance costs are assumed, and no financing costs are assumed. The roof is roughly south-east facing. Much will depend on what price you get for your exported electricity. Tariffs vary widely. If you keep on top of things, however, you should be able to get the 15p per kilowatt hour we use below. Household size System size in kw Array cost Electricity cost per year before solar Savings (energy used and sold from panels) Price after solar (negative means a surplus) Pays for itself after 3-bed 3.6kw £4,990 2,900 kWh @24.5 pence = £710 £540 £170 9 years 4-bed 5.4kw £5,470 2,900 kWh @24.5 pence = £710 £780 -£70 7 years 5-bed+ 9.9kw £7,390 2,900 kWh @24.5 pence = £710 £1,370 -£660 5 years
