King Charles may have begun his reign with cutting-costs for the Crown given the financial burden, but it seems he will be raking in quite a big profit.
Despite his Sovereign Grant rate got slashed by half, the monarch will receive nearly $125 million in profits.
According to U.K. Treasury’s Report of the Royal Trustees on the Sovereign Grant Review 2023, the Sovereign Grant will be cut from 25% to 12% for 2024-2025 onwards. The news came amid the UK facing terrible cost of living crisis implying that the revenue will be spent on public good.
The brief outlined that money “will instead be used to fund vital public services, for the benefit of the nation.”
However, the Guardian pointed out that the report has spun the facts into thinking the royal family is taking a ‘cut’ in their pay when they are actually getting a raise.
“In fact, the report reveals the monarchy is due to receive a huge pay increase, although the rise will not kick in for another two years,” the outlet stated. It detailed that the public funding for the monarchy will bump up 45% starting in 2025, from about £86 million ($110 million) to nearly £125 million ($160 million) starting in 2025.
The Sovereign Grant is used to pay for official royal duties which is a taxpayer-funded settlement received by the royal family.
On the notion of the pay increase, Buckingham Palace told the Guardian that the increase was only “temporary” for the financial years of 2025 to 2027.