A full net worth for the Royal Family is difficult to estimate, but one thing is certain – they’re not exactly short of money. While the monarchy is partially funded by the taxpayer, their revenue system is actually much more complicated, and involves several avenues that all have different rules.
How is the monarchy funded?
The Royal Family is funded through several revenue streams – some public and some private, most notably the Sovereign Grant and the Privy Purse.
The Sovereign Grant is made up of the income from the Crown Estate.
Its website explains: “The Crown Estate belongs to the reigning monarch ‘in right of the Crown’, that is, it is owned by the monarch for the duration of their reign, by virtue of their accession to the throne.
The Queen’s revenue comes from multiple areas
The Sovereign Grant – year by year
”But it is not the private property of the monarch — it cannot be sold by the monarch, nor do revenues from it belong to the monarch.”
In the fiscal year ending March 31, 2020, the Crown Estate pulled in more than £514 million, with more than £349 million in profits.
Of this, the Royal Family takes home 25 percent of the Crown Estate income, which is also known as the Sovereign Grant. The remaining 75 percent goes to the British Treasury.
The latest Sovereign Grant was roughly £88 million, which is used only for official expenses, including payroll, security, travel, official royal events and other housekeeping activities involved in the running of the monarchy.
How the Crown Estate works
The Queen is funded by the Privy Purse and the Sovereign Grant
The private expenses of the Queen and some members of the family are supported by another allowance through the Duchy of Lancaster, known as the Privy Purse.
The Duchy of Lancaster comprises of a portfolio of land, commercial and agricultural properties, and other assets that have belonged to the royals for generations.
The sum funds costs that are not covered by the Sovereign Grant – most expenses incurred by other members of the Royal Family.
In the most recent fiscal year, the Duchy of Lancaster reported a net profit of approximately £22 million.
The family has multiple income streams
The Queen also boasts her own private, highly valuable assets.
Her Majesty owns the Sandringham and Balmoral Estates outright, as well as an extensive private art collection and jewels passed down from previous monarchs.
The total value of the Queen’s private assets make the total net worth difficult to estimate.
Outside of the monarch, other royals also have their own private income streams
Prince Charles receives a comfortable amount from the Duchy of Cornwall, which gave the duke £21.6 million in 2019.
This wealth is used by him and passed onto his children and grandchildren in the Cambridge wing of the family – as the Duke and Duchess of Sussex have now strived for financial independence as part of their exit from the family, they do not receive money from Prince Charles.
Royals who work full time for the Crown – that is the main players; the Queen; the Duke and Duchess of Cornwall; the Princess Royal; The Duke and Duchess of Cambridge; and the Earl and Countess of Wessex – are not allowed to earn money from sources outside of the main revenue streams.
Source: EXPRESS CO UK