Royal family could receive more money despite percentage cut: report

Treasury officials have revealed that the proportion of the Crown Estate’s profits paid to the royals will be reduced to 12% from next year, down from the current rate of 25%.

Despite the percentage cut, the amount of money given to the British royal family by the UK government is projected to "increase significantly” in the coming years, according to a new report.

An unexpected surge in profits means the royal family is poised to receive more money than in previous years, according to the latest review of the annual Sovereign Grant.

The sovereign grant, which is based on profits generated two years before the financial year in question, was worth £86.3 million this year, unchanged from the year before, according to CNBC.

The royal family is forecast to generate profits of around £1.04 billion from the crown estate in 2023 to 2024 and £1.05 billion in 2024 to 2025, the same outlet, citing the latest report of the royal trustees on the sovereign grant, reported on Friday.

At the new 12% formula, this means the monarchy could receive £124.8 million in 2025 to 2026 and £126 million the following year.

The royal receives a sovereign grant to cover the costs of running their households and for official travel expenses, which is based on surplus revenue of the Crown Estate.

The grant, which last year was worth 86.3 million pounds ($111 million), is typically based on 15% of Crown Estate profits but has been temporarily increased to 25% to pay for extensive refurbishment work at Buckingham Palace.

However, new deals for offshore wind farms are expected to see the Estate profits surge by 900 million pound a year.