Royal Finances

Introduction

Royal Finances have been the subject of public and press attention for decades, with the Monarchy sometimes being described as an expensive or bloated institution. This narrative could not be further from the truth.

This article will seek to explain how the Royal Family are financed, along with the recurring financial benefits we receive from having a monarchy.

The Sovereign Grant

Since 1760, British monarchs have voluntarily surrendered their hereditary revenues from the Crown Estate in return for a fixed civil annuity from the Government. Until 2012, this came in the form of four different elements: The Civil List, and three different Grants-in-Aid for travel, communications, and the maintenance of royal residencies.

The Sovereign Grant Act consolidated this funding into one grant. Despite these changes, today's financing for the monarchy is sourced from an approximate 12% stipend of the hereditary revenues from the Crown Estate.