Royal Household Core Funding to Rise to £99.9 Million in 2027-28

The Sovereign Grant paid to the Royal Household will rise to £99.9 million in 2027-28, nearly double the £51.8 million allocated for 2024-25. Officials said the increase stems from a revised calculation that sets the grant at 20.5 per cent of Crown Estate net profits, up from the current 12 per cent.

The Royal Trustees approved the change. The group includes outgoing Prime Minister Sir Keir Starmer, Chancellor Rachel Reeves, and the King’s Keeper of the Privy Purse and Treasurer, James Chalmers. The additional funds will address maintenance backlogs, cybersecurity upgrades, and energy-efficiency work at occupied royal palaces.

Chalmers stated that the money is not a blank cheque and remains subject to the same value-for-money rules applied to other public bodies. He noted that expenditure follows detailed planning, independent audit, and Treasury oversight. The new core grant replaces a temporary uplift that funded the £369 million Buckingham Palace renovation.

That extra payment ends in 2027, so the overall Sovereign Grant will fall from £137.9 million in 2026-27 to £99.9 million the following year.

The Crown Estate reported net revenue profit of £487 million for 2025-26. Officials said future profits are expected to decline once Offshore Wind option fees cease, prompting the higher percentage share for the Sovereign Grant. The grant is drawn from public funds in exchange for the monarch surrendering Crown Estate revenue.

It does not provide personal income to members of the Royal Family, according to James Chalmers.