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The public subsidy rate of King Charles III. and the royal family has been cut by more than half due to rising profits from offshore wind farms on the Crown Estate.
Britain’s Treasury announced on Thursday that it will reduce the royals’ share of the Crown Estate’s net profit to 12% next year, down from 25% in recent years.
The amount of money made available to the monarchy through the annual Sovereign Grant remains the same at £86 million ($111 million). However, the newly adjusted rate will result in the royals getting £300m ($386m) less over the next three years than if the rate had remained at 25%.
The public funding of King Charles III. and the royal family have been cut by more than half due to rising wind farm deal profits. (Getty/Fox News)
Each year, Charles and the royal family receive a Sovereign Grant, a payment from the British government used to fund official royal duties.
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The size of the Sovereign Grant is calculated from the net profits of the Crown Estate, an extensive portfolio of land and tenements owned by the reigning monarch but managed by an independent body, the Crown Estate Commissioners.
All excess revenue from the Crown Estate is turned over by the board to the Treasury, which then passes on a portion of the profits to the Royals through the Sovereign Grant.
In 2017, the rate of Crown Estate profits that royals received was increased from 15% to 25% for a decade to help cover the cost of refurbishing Buckingham Palace.
The royal family receives an annual payment from the British government to fund official duties. (Buckingham Palace/Hugo Burnand/Fox News)
In January, the Crown Estate, which also owns most of the coast and seabed around the UK, announced it had landed six new wind farm deals that would result in an estimated £1 billion (US$1.3 billion) annual windfall.
At the time, Charles expressed his wish that the proceeds should be used for the “broader public good” and not for the official duties of the monarchy.
“In light of the unexpected offshore energy cuts, the treasury manager has written to the Prime Minister and Chancellor to share the King’s wish that these losses benefit a broader public interest and not the State Subsidy, by a corresponding reduction in the proportion of the Crown Estate’s surplus that funds the State Subsidy,” read a statement released by Buckingham Palace.
The percentage of Crown Estate profits that benefited the royals was increased to 25% in 2017 to fund the renovation of Buckingham Palace. (AP Photo/Kirsty Wigglesworth, File/AP Images)
Charles is known for his commitment to green energy, but he has also spoken out about the ongoing cost of living crisis and the pressures millions are facing. The move to reduce its share of profits from the wind farm deal would help mitigate criticism that the royals are out of touch with broader British society.
The monarch and his son, Prince William, also derive private income from royal estates known as the Duchies of Lancaster and Cornwall.
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The royal trustees – British Prime Minister Rishi Sunak, Chancellor Jeremy Hunt and keeper of the secret purse Sir Michael Stevens – conducted an audit of the royal finances and decided to lower the rate to 12%.
In addition to the Sovereign Grant, King Charles and Prince William receive private income from royal estates known as the Duchies of Lancaster and Cornwall. (Max Mumby/Indigo/Getty Images / Getty Images)
“A reduction in the rate to 12% is expected to reduce the State subsidy by £24m over the period 2024-25, while the rate will remain lower at 25% and over £130m in 2025 and 2026 respectively. That money will instead be used to fund vital public services for the benefit of the nation,” Hunt said in a statement.
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“For almost 300 years, kings and queens have ceded the profits of the Crown Estates to the British people, and in return the Government has provided a fraction of them to properly assist the King in the performance of his official duties.”
“The new Sovereign Grant rate reflects the unexpected significant increase in the Crown Estate’s net profits from the development of offshore wind farms, while providing sufficient funds for official deals and essential property maintenance, including the completion of the 10-year reservation of Buckingham Palace.”
The Associated Press contributed to this report.