King Charles' monarchy gets a $60M pay raise

King Charles III's monarchy is set to receive a pay rise of more than 45 million pounds ($60 million), with a 53% jump in its official annual income, accounts show, according to Report, which cites UK media.

The Sovereign Grant, the mechanism used to fund royal spending, will rise from over 86 million pounds ($110 million) in 2024-25 to around 132 million pounds ($170 million) in 2025-26, because of a surge in profits from the Crown Estate, a vast collection of land and property across the UK.

Funded by the taxpayer, the Sovereign Grant is used to support the official duties of the monarch and other costs such as official travel, thousands of engagements, staff for working royals and the maintenance of occupied palaces.

It is based on a proportion of profits from the Crown Estate, which is independently run and has assets worth billions of pounds, including some of London’s most expensive real estate.

A separate report from the Crown Estate on Wednesday showed that it had generated profits of 1.1 billion pounds, or $1.4 billion.

The Sovereign Grant is funded by the taxpayer in exchange for the king’s surrender of the revenue from the Crown Estate. The royal household had been receiving 25% of the Crown Estate’s profits until it was agreed last year that the funding would be cut to 12%.

But it will still receive a significant boost in funding for 2025-26, largely due to Crown Estate profits. The report said it had seen a “year of record results driven by decades of investment in offshore wind, combined with a diverse and resilient property and land portfolio.”

Part of the funding increase will help finance the final stages of a 10-year, 369 million pound ($475 million) “reservicing” of Buckingham Palace, a project that is now in its eighth year, said the annual report about the Sovereign Grant, published Tuesday.

The king also installed solar panels at Windsor Castle and increased the use of sustainable aviation fuel for royal flights. The royal household will take delivery of two new helicopters in the coming year to replace aging aircraft, it said, noting that their use was a “key component of delivering engagements by His Majesty, as Head of Nation, and other members of the Royal Family.”

The grant is reviewed every five years, and is expected to next be reviewed through legislation in 2026-27 to keep funding for the royal family at an “appropriate” level.

In addition, the king receives income via the Privy Purse from the Duchy of Lancaster, a landed estate, while the Prince of Wales receives the net profits from the Duchy of Cornwall.