The King's '£125million pay rise'? It really isn't that simple
The King's 'pay rise' was approved by MPs and is only temporary
There's more to this story than the spin put on headlines suggest
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Is the King really receiving a “huge pay rise from UK taxpayers” as the Guardian puts it? It’s not as simple as that.
It’s true the Sovereign Grant will increase to roughly £125million from 2025-6 and 2026-7, which can be spun as a 45 per cent increase.
However, I understand this rise is only temporary to fund the re-servicing of Buckingham Palace - which was always pre-agreed with members of Parliament.
By 2025-26, the Sovereign Grant will have remained flat at £86.3million for four years - which is actually a cut in real terms given inflation.
As per His Majesty’s wishes, the extra profits generated from new Crown Estate wind farm projects will still be directed to the “wider public good”, rather than benefit the Sovereign Grant.
However, we are very much in a cost of living crisis with many families struggling to pay their bills.
In 2026-27 a further review by Royal Trustees (PM, Chancellor, Keeper of the Privy Purse) is expected to bring the Sovereign Grant back down.
Allocating royal funds is a delicate balance, and a big challenge for Buckingham Palace and Royal Trustees to ensure the monarchy is value for money and benefits the nation.
