The Royal Family Will Receive a Big Pay Increase This Year—Here’s How Much They’re Getting
Royalty certainly comes with benefits, including a severe lack of experience with money troubles. After all, being in line to the throne (or comfortably seated in the gilded chair) means a life in lavish palaces and a hefty spending account. This year seems to be off to a particularly good start for members of the British royal family, who are about to receive a significant pay increase.
But where does that extra money come from, what will the royals use it for, and how does the pay bump align with King Charlessplan for a slimmed-down and more cost-efficient monarchy? And perhaps more importantly, how do British citizenswho, unlike Charles, do not own nearly a hundred residencesfeel about funding a pay increase for one of the country’s wealthiest families?
We asked royal expert Richard Fitzwilliams to shed some light on the royal finances and the much-talked-about pay increase. Read on to find out the jaw-dropping bonus the royals will rake in this year.
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How wealthy is the royal family?
Considering that their private assets and bank accounts are kept strictly confidential, it’s almost impossible to say for sure how rich the British royals really are. Forbes estimates their empire is worth $28 billion. But if you think that makes King Charles the richest person in the U.K., think again.
The Sunday Times publishes an annual “Rich List” of the 350 wealthiest Britsand in the latest issue, Charles ended up in 258th place. His estimated net worth: 610 million pounds, or $747 million. Businessman Gopi Hinduja and his family topped the list with a net worth of about 2.2 billion pounds ($2.6 billion). But plenty of other familiar faces also ranked higher than the monarch:
- Singer Paul McCartney and his wife, Nancy: 165th place, with 1 billion pounds, or $1.2 billion
- Harry Potter author J.K. Rowling: 175th place, with 945 million pounds, or $1.1 million
- Former British prime minister Rishi Sunak and his wife, Akshata Murty: 245th place, with 651 million pounds, or $798 million
No other senior royal even made it onto the list.
How do the royals make money?
The British royal family has three main sources of income: the Sovereign Grant, the Duchy of Cornwall and the Duchy of Lancaster, according to Fitzwilliams.
“The Sovereign Grant is the annual funding the royal family receives from the public, while the Duchy of Cornwall and the Duchy of Lancaster are two portfolios of lands and estates that belong to King Charles and his eldest son, Prince William,” he says.
The king and the Prince of Wales each make about 50 million pounds ($61 million) a year with their duchies, which together are worth the equivalent of $20.8 billion. As for the Sovereign Grant, it provides the royals with millions each yearand it’s about to get even larger.
How much additional money will the British royal family receive in 2025?
The British royal family will get an extra 45 million pounds (about $55 million) in April 2025, taking their annual income, the Sovereign Grant, from 86.3 million pounds ($105.6 million) to 132 million pounds ($161.6 million)an increase of 53%!
Of course, the million-dollar question (er, $55 million question) is: Where does all that money come from?
British taxpayers fund the Sovereign Grant, which is meant to support the official duties of the king and other senior royals, as well as ensure that the royal palaces and estates are well maintained. In other words, it’s there to keep the monarchy running.
“Technically, King Charles, as the sovereign, is the one who gets the money, but obviously it’s everything but a private spending account,” says Fitzwilliams. Every year, the royal family publishes their financial reports online, so everyone can see where, exactly, the money went. What’s more, the Sovereign Grant is reviewed and adjusted every five years, so just because the royals were lucky to get a pay increase this time, it doesn’t necessarily mean it’s there to stay.
What will the monarchy do with this money?
The largest chunk of the extra money will go toward ensuring the renovations of Buckingham Palace stay on time and within budget. The headquarters of the British monarchyand a bucket-list landmark for most visitors to Londonis currently undergoing a major revamp over a span of 10 years, making sure all the electrical cabling, plumbing and heating systems are up to date. There’s a significant amount of work to do, considering they’d been left unchanged since the 1950s. The complete refurbishment will cost around 369 million pounds (approximately $451 million), mostly funded by taxpayers.
The rest of the Sovereign Grant will, per Fitzwilliams, be used “to pay the staff of the royal household, to maintain the other palaces the royals own and to pay for official engagements and travel.”
Does this align with Charles’s promise to streamline the monarchy?
When Charles became king in 2022, he promised to slim down the monarchy and cut costs. And while a $55 million pay increase doesn’t exactly scream “budget friendly,” it doesn’t necessarily contradict his plan.
“There’s a good reason for the extra moneynamely the refurbishments of Buckingham Palace,” says Fitzwilliams. “And in the long run, Charles might even help save costs, as all the new boilers, pipes and heating units that are being installed in the palace will lower the monthly bills.”
What’s more, the king has already cut spending by significantly reducing the royal staff. And in exiting the “Firm,” Prince Harry and Meghan Markle exited the royal payroll, saving taxpayers even more money.
How does the public feel about this royal raise?
Matters of the monarchy and money always cause a bit of a stir in the U.K. After the announcement of the latest pay increase, critics pointed to the high cost of living and all the things the money could be used for instead, from health care to solving the housing crisis. It doesn’t help that the U.K., like most countries, struggled economically for years in the aftermath of COVID-19 (and, an extra blow to the island, Brexit), and economists are predicting yet another financial crisis.
Still, others were keen to defend the royal family, emphasizing the benefits of having them as figureheads. “Money issues will always cause controversy, and the royal family is no exception,” says Fitzwilliams, noting that they also bring in money. Experts estimate the royal family pumps an impressive 2.5 billion pounds ($3 billion) into the British economy every year.
“We mustn’t forget that the U.K. has the world’s most high-profile monarchy,” Fitzwilliams adds. “Britain wouldn’t be Britain without the royals. The monarchy is an extraordinary institution that shapes how we’re seen in the world, and it brings in a lot of money in returne.g., from tourism.”
Despite the positives, the recently aired Channel 4 documentary The King, The Prince & Their Secret Millions: Dispatches didn’t go down well with many Brits and refueled the debate. It showed in detail how the Duchy of Cornwall and the Duchy of Lancaster are run as for-profit businesses, receiving millions in rent every year from schools, the National Health Service, the British army and even charities the royals support.
“The duchies have been run the same way since the 14th century,” says Fitzwilliams. “They are well established but by no means perfect systems. It’s undeniable that the optics are odd.”
Do U.K. residents want to abolish the monarchy?
While there’s a public outcry about the cost of the royal familyand issues with various Commonwealth stateson a regular basis, the majority of Brits want their country to remain a monarchy. According to an Ipsos survey published in October 2023, two-thirds support the royal family, with only 1 in 4 saying they’d prefer a republic.
A closer look at the results shows, however, that younger people are less convinced of the usefulness of the Firm. While 81% of those ages 55 and over stand behind the monarchy, only 49% of 18- to 34-year-olds do so. “It has always been a characteristic that the older people get, the more they support the royal family,” says Fitzwilliams.
Nonetheless, he believes that Harry and Meghan have also played a part in Gen Z’s turn away from the monarchy. “Harry and Meghan are very popular among young people, and many of them want the monarchy gone just to express their support for them.”
On the flip side, he says William and especially his wife, Kate, remain “tremendously popular” with that age group and stand a good chance of turning things around again.
About the expert
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At Reader’s Digest, we’re committed to producing high-quality content by writers with expertise and experience in their field in consultation with relevant, qualified experts. We rely on reputable primary sources, including government and professional organizations and academic institutions as well as our writers’ personal experiences where appropriate. For this piece, Astrid Hofer tapped her experience as a London-based journalist with more than 20 years of experience covering topics including the British royal family. We verify all facts and data, back them with credible sourcing and revisit them over time to ensure they remain accurate and up to date. Read more about our team, our contributors and our editorial policies.
Sources:
- Richard Fitzwilliams, royal expert; phone interview, Jan. 15, 2025
- The Royal Household: “Royal finances”
- Forbes: “Inside ‘The Firm’: How the royal family’s $28 billion money machine really works”
- The Sunday Times: “The Sunday Times Rich List”
- BBC: “Royal finances: Where does the king get his money?”
- BBC: “Royal estates ‘receive millions from public bodies and charities'”
- The Guardian: “The sovereign’s wealth: UK royal family’s finances explained”
- CBS News: “How rich is the British royal family?”
- The Independent: “Monarchy to receive boost of more than 45 million”
- The Independent: “How much money does the royal family bring in tourism?”
- The Guardian: “Cost of taxpayer-funded grant for UK monarchy to rise by 45 m”
- Ipsos: “Two-thirds prefer Britain to remain a monarchy”
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