London, July 24: King Charles III is set for a substantial pay rise, with his official annual income increasing by £45 million, according to the latest royal accounts. The Crown Estate, which funds the monarchy, reported profits of £1.1 billion, leading to a rise in the sovereign grant from £86 million in 2024-25 to £132 million in 2025-26.
In his first full year after inheriting the Duchy of Cornwall, the Prince of Wales received £23.6 million, funding his family’s official and charitable activities. Like his father, Prince William pays standard rate tax on his income after official costs are deducted.
Michael Stevens, the King’s Keeper of the Privy Purse, highlighted that the increased sovereign grant will be crucial for the final stages of the Buckingham Palace refurbishment. Post-completion, a reduction in the grant amount will be sought through primary legislation to ensure continued appropriate funding for the royal family’s work.
The royal accounts also noted the empty state of Frogmore Cottage, renovated at a public cost of £2.4 million and reimbursed by the Duke and Duchess of Sussex. Princess Eugenie, who previously lived there, has moved out, leaving the property without new tenants.
During the past year, the royal family undertook over 2,300 official engagements, a slight decrease from the previous year’s 2,700. Despite his cancer diagnosis, King Charles participated in 464 engagements, while the Queen attended 201, including 103 joint appearances.
The coronation and related events cost the sovereign grant £600,000, with overall expenses amounting to £800,000, covering staffing, palace receptions, and reusable furnishings and costumes.
The Crown Estate’s doubling of profits, primarily driven by offshore wind project leases, contributed significantly to the increased sovereign grant. The National Audit Office (NAO) praised the Buckingham Palace renovation project for its effective management, despite structural issues and asbestos discovery leading to increased costs. The project remains within budget, with net expenditure at £238.9 million, or 65% of the total budget.
Gareth Davies, head of the NAO, emphasized the successful handling of challenges like the pandemic, ensuring the renovation represents good value for money.
The substantial rise in the sovereign grant underscores the financial health of the Crown Estate and its pivotal role in funding the monarchy’s operations and significant projects. As the Buckingham Palace refurbishment nears completion, future adjustments to the grant will aim to balance royal funding with fiscal responsibility.