King Charles III will receive a core annual payout of £99.9 million only from public funds as grants to support the Royal Household spendings and his official duties, following a parliamentary update to the funding framework governing the British monarchy.
The new core figure set for the 2027–28 financial year represents a significant rise from the £51.8 million core grant provided in 2024–25. Ministers attribute the funding increase to a substantial rise in official duties, public engagements and overseas state visits carried out by the King compared to the final years of Queen Elizabeth II’s reign.
The funds are provided through the Sovereign Grant, the annual payment from the UK Treasury that finances the monarch’s public duties, royal travel, staff payroll and the upkeep of occupied royal palaces.
The grant is pegged to the net profits of the Crown Estate, a vast portfolio of land and property belonging to the sovereign, the profits of which are remitted directly to the Treasury. Under the newly approved settlement, the proportion of Crown Estate profits allocated to the Royal Household will rise from 12% to 20.5% for a five-year period starting in 2027.
Treasury Minister Dan Tomlinson explained that adjusting the formula ensures the monarchy receives sustainable and proportionate funding.
“The new level of the grant will ensure that the Royal Household can continue to deal with property maintenance backlogs following years of constrained funding during the pandemic,” Tomlinson stated, adding that the funds would also support essential infrastructure, including upgrading cybersecurity systems and installing energy-efficient heating across royal estates.
Despite the substantial rise in the baseline core grant, the monarchy’s total overall Sovereign Grant allocation will actually decrease compared to recent peak years falling from £137.9 million as the multi-year, £369 million reservicing of Buckingham Palace nears completion.
The Royal Household’s Treasurer and Keeper of the Privy Purse, James Chalmers, stressed that the grant does not represent personal wealth for the King or members of his family.
“It is important to emphasize that the Sovereign Grant does not provide personal income to members of the Royal Family,” Chalmers said. “It funds the work of the institution, not private lives or private wealth.”
The grant covers overseas state visits and domestic transport for working royals undertaking official duties, structural upkeep, urgent repairs and green energy initiatives across royal residences like Windsor Castle.
It also covers payroll for hundreds of full-time equivalent staff running official events, communications and household logistics.
Personal expenses for the King and Queen are funded separately through the Privy Purse derived from net revenues of the Duchy of Lancaster estate on which King Charles voluntarily pays income tax. Similarly, Prince William and the Princess of Wales derive their personal income from the Duchy of Cornwall estate.
The expanded core grant has drawn sharp criticism from anti-monarchy campaign groups, who argue the payout comes at a difficult time for UK taxpayers.
Campaign group Republic branded the funding model ‘unreasonable’, contending that the monarchy’s public allocation should be dramatically reduced rather than increased. Critics have also called for greater transparency regarding specific travel expenses, such as official helicopter flights and private charter jets.
However, the Treasury maintained that royal expenditures are subject to rigorous governance, Treasury oversight and independent audits to guarantee value for taxpayers. The £99.9 million settlement will remain in place for five years before the formula undergoes its next official review by the Royal Trustees.
