King Charles III’s monarchy will not receive a pay raise in 2024-2025.
Photo : AP
King Charles III’s monarchy will not receive a pay raise in 2024-2025, despite the Sovereign Grant, which funds royal duties and palace upkeep, set to surge by £45 million ($60 million) to £132 million ($170 million) in 2026-2027, according to Crown Estate accounts. The grant, sourced from taxpayer-backed profits of the £15 billion ($20.6 billion) Crown Estate, remains at £86 million ($110 million) this year, as 4.5 million UK children face poverty amid a cost-of-living crisis.
The decision to delay the increase reflects a cautious approach to public sentiment, with the monarchy navigating economic hardship gripping the UK. As per a report by NBC News, the Crown Estate’s record £1.1 billion ($1.5 billion) profit in 2024-2025, driven by offshore wind farm leases, has boosted the grant’s future funding, but its implementation is deferred to 2026. This delay stems from the government’s reluctance to approve a significant royal budget hike when 62% of Britons reported rising living costs in May 2025, per the Office for National Statistics.
Buckingham Palace Upgrades Take Priority
The forthcoming £60 million increase will primarily fund the £369 million ($475 million) Buckingham Palace refurbishment, with £266.5 million ($367 million) already spent on modernising infrastructure like lifts and pipework. The grant also supports 800 royal events, 539 staff, and new helicopters for remote UK travel, while the royal train, a favourite of Queen Elizabeth II, faces decommissioning for cost efficiency.
These expenses, justified as essential for royal duties, are under scrutiny as 92% of Britons noted higher food prices in May 2025. Separate from the grant, King Charles earns from the Duchy of Lancaster, and Prince William from the Duchy of Cornwall, with Buckingham Palace adding £21.5 million ($29 million) from record visitor numbers in 2024. The Crown Estate’s profits, surrendered by King George III in 1760 for a share of revenue, flow to the Treasury before funding the grant, a system reviewed every five years. The next review in 2026-2027 will assess if the monarchy’s funding aligns with public expectations amid economic strain.
The delay in the pay raise reflects a move to avoid inflaming public anger, with government statistics showing a 100,000-child increase in poverty last year. The government’s hesitation to approve the raise now, despite the Crown Estate’s windfall, is tied to political sensitivities, as the Labour Party faces pressure to prioritise welfare over royal spending. Delaying the increase allows time to gauge public reaction before the 2026 review, which could adjust the monarchy’s share to balance fiscal responsibility and royal obligations.
