How Does the Royal Family Make Money?
Finances of the British royal family
Apart from relishing fancy titles and the comfort of posh homes, the Royals possess huge bank accounts. Their income is worth millions — the digit count is as lengthy as a phone number.
But how do the royals get their money? The different sources account for such a ranging number — from government grants to private estates. Let’s explore how they make wealth.
1. The Sovereign Grant
British Royal monarchs had possessed several lucrative real estates that go back centuries. Like all the previous monarchs, King George III, in 1760, transferred such properties to the British government.
To compensate for the crown state, the government has been paying the queen. The government is paying a “Sovereign Grant” since 2011.
If we talk about the rough estimate of such a grant, then in 2019, it amounted to $105 million.
2. The Sovereign Grant Only Pays For The Royal Households
The sovereign grant may seem quite a hefty amount to a commoner, but it is not for royals. The grant money is spent on daily maintenance of the monarchy — from covering the staff salaries to paying for utilities and bearing official travel expenses.
The maintenance of royal residence sits at the Queen’s topmost priority. She has to maintain all the centuries-old castles and palaces, which no doubt are incomparable in grandeur but at the same time are money pits.
To keep the official residences, like Buckingham Palace and Windsor Castle, up and running, the royals require enormous funding — the Sovereign Grant covers only a portion of it.
Preserving the royal collection is not a piece of cake, and expenses do flow out of hand. For instance, in 2017, the Buckingham Palace repair’s mounted to the extent that parliament had to increase the grant to about $482 million for meeting the expenses.
3. The Duchy Of Cornwall Profits
The Duchy of Cornwall in the 14th century took a thoughtful measure and generated a private income for the next in line to the throne.
Prince Charles, The Duke of Cornwall, thus receives payment from the duchy’s holding. The duchy provides Charles with an income of around $28 million every year.
It is not only Prince Charles who enjoys the private pay, but both of his sons, Princes William, Prince Harry, and their families, receive the money too.
Talking about Prince Harry and his wife Meghan, the couple receives about 95% of their annual income, about $6.5 million, from the Duchy of Cornwall.
Apart from receiving the money for their father’s estate, Prince Harry and William also enjoy the fortune left by their mother, Princess Diana of Wales, and their great-grandmother.
Princess Diana had left more than $12 million in trusts to each son while the great-grandmother left $18 million to the great-grandson’s money.
4. Profit From The Queen’s Private Property
It is not just the royal properties that account for royal income but also privately owned land.
The queen owns several private properties like the Duchy of Lancaster — it is one of the most significant private holdings, which generates more than $25 million for the queen.
Her other private estates include Balmoral in Scotland and Sandringham in England.
5. Senior Royals Are Not Allowed To Work
Ranks within the British royal family differ. Due to the succession rules, the senior members are not allowed to earn income from working.
If we dig into the reason, then being a senior royal member comes with loads of responsibility of undertaking royal duties each year.
In 2019, Prince Charles alone had 521 royal engagements, leaving no room for any job outside the royal family.
6. William & Harry Earned Income Through The British Armed Forces
Before reserving their time for royal affairs, Prince Harry and William had careers in the British Armed forces.
They graduated from the University of St. Andrews in 2005. William took the training as a search and rescue pilot, earning an annual salary of $70,000.
Until 2017, he subsequently worked as an ambulance pilot and donated his whole salary to charitable organizations.
Talking about Prince Harry, he began his training for the military in 2005 and served in Afghanistan. As an officer, Prince Harry received an income of $50,000.
7. Some Royals Do Have Regular Careers
The less senior royal family members do not receive money from the sovereign grant, making them eligible to take on their professional careers.
Apart from paying part-time royal duties, Princesses Beatrice and Eugenie, the queen’s granddaughter, are pursuing their careers.
The members who are not full-time royals do take paid employment. Peter Phillips and Zara Tindall do professional work like Phillips has served in sports and banking while Tindall now works as racecourse director.
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