Will the Queen have to rein in costs to cover a Covid ‘pay cut’?

Will the Queen have to rein in costs to cover a Covid ‘pay cut’? Ministers in talks with Palace to reduce £82m annual taxpayer package – with Monarch ‘happy to play her part’

  • Government officials are in talks with Palace about a new financial settlement 
  • Her Majesty’s current five-year Sovereign Grant agreement ends in 2022 
  • The Royal Family currently receives 25 per cent of the Crown Estate’s profits 

The Queen faces a substantial ‘pay cut’ as ministers look to rein in spending on the monarchy after Covid, according to courtiers.  

Government officials are in talks with the Palace about a new financial settlement for the Royal Family, insiders claim.

Her current five-year Sovereign Grant agreement ends in 2022 and the new one is unlikely to be so generous.

‘The last settlement was exceptional and we cannot expect that to be repeated,’ one courtier told the Daily Mail. 

‘Her Majesty is very much aware of the hardships people have been through during the pandemic and is happy to play her part in cutting costs.’

The Queen (pictured with Prince Philip) faces a substantial ‘pay cut’ as ministers look to rein in spending on the monarchy after Covid, according to courtiers

The Royal Family's pay was increased to foot the costs for a huge programme of refurbishments at Buckingham Palace

The Royal Family’s pay was increased to foot the costs for a huge programme of refurbishments at Buckingham Palace

The Royal Family currently receives 25 per cent of the Crown Estate’s profits. They previously received 15 per cent but it was increased to pay for a huge programme of refurbishments at Buckingham Palace. 

The Queen, who turns 95 next month, conducted 296 official engagements in 2019, when she was given £82.4 million in taxpayer funding. The Palace claims this is equivalent to £1.23 for every person in the UK.

The Sovereign Grant replaced the Civil List as the funding mechanism for the royals in 2012 and funds the family’s public duties, including travel, operating costs of the Queen’s household and the upkeep of palaces.

The Palace admitted last September that it faced a £35million funding shortfall due to Covid-19 — but said it would not ask for extra public money.

Senior royal aides said the household would have to tighten its belt, which could lead to job losses.

The royals’ expenditure will likely have been pared back over the past year, with Harry and Meghan leaving for the US and Prince Andrew stepping down from public duties. 

The Family has been consumed by the ongoing row with Harry and Meghan, which escalated following their bombshell interview with Oprah

The Family has been consumed by the ongoing row with Harry and Meghan, which escalated following their bombshell interview with Oprah

In the Oprah interview, Harry complained about being financially cut off after relinquishing his royal role. 

Buckingham Palace declined to comment, but a royal source said: ‘The five-year review into Sovereign Grant funding is due to start in the coming financial year and it would be premature to speculate on the outcome.’

The Queen has been spending lockdown at Windsor Castle where she and Philip have been helped by a much smaller team of staff.

The Duke of Edinburgh, 99, this week returned to Windsor after a month-long hospital stay in London.

Throughout the pandemic the Queen has steeled the nation’s resolve and has offered words of comfort through the darkest points in the crisis.

She even revealed when she had her vaccine to encourage others to get jabbed. 

But the Family has been consumed by the ongoing row with Harry and Meghan, which escalated following their bombshell interview with Oprah.

Although ruling out the Queen and Philip, the couple accused a royal of expressing ‘concerns’ over how dark Archie’s skin would be. 

The Family is looking into the allegations, as well as claims of bullying made against Meghan.