The Royal Family cost a LOT of money last year – especially considering there was (and still is) a cost of living crisis.
Here’s how much we taxpayers paid toward the Royal Family in 2022…
How much did the Royal Family cost taxpayers?
The Government recently revealed how much money it gave the Royal Family in 2022-2023. Every year, the taxpayer-funded settlement, known as the Sovereign Grant, is paid. However, this isn’t the only source of income for the Royal Family.
Last year, the Sovereign Grant was worth £86.3m. This is the same as it was in 2021-2022. But how much does this cost us taxpayers?
The Sovereign Grant for 2022-23 is £86.3m, which would be the equivalent of £1.29 per person in the UK.
The Sovereign Grant is made up of two parts. The Core Grant, which is funded by taxpayers, and an additional dedicated amount for Reservicing. The Core Grant is £51.8m. The amount for Reservicing is £34.5m.
Royal Family overspend
However, the Royal Family actually managed to overspend last year, meaning reserve money had to be drawn upon.
Repairs on Buckingham Palace, the costs involved in King Charles succeeding Queen Elizabeth II, as well as higher-than-expected inflation, meant that the Royal Family spent more than usual last year.
According to reports, the Royal Family spent £107m last year – £23.6m more than is in the Sovereign Grant. This was a 5% increase on what they spent the previous year (£102m).
This meant that the King and the Royals had to draw on more than £20m from reserves.
How is the Sovereign Grant calculated?
The Sovereign Grant is based on a proportion of the profits made by the Crown Estate. The Crown Estate is a property business owned by the King. However, it is run independently. Its assets were reportedly worth £16.5 billion in 2022.
The Crown Estate includes almost £8 billion of properties in London. It also includes nearly half the land along the coast of England, Wales, and Northern Ireland. It’s not the King’s property, it just belongs to him for the duration of his reign.
The monarchy then receives 25% of the profits made by the Crown Estate over the past two years. The rest go to the Treasury. However, the monarchy’s percentage is set to reduce in the coming years.
The Sovereign Grant can only be used to pay for expenses related to the Royal Family’s official duties.
The Royal Family also receives money from a private estate called the Duchy of Lancaster. It reportedly generates around £20m a year in profits.
In 1992, the Queen offered to pay income tax and capital gains tax on her income. The King does the same. The two duchies (Cornwall and Lancaster) are exempt from corporation tax, but the King and Prince William voluntarily pay income tax on the revenue they generate.
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