Nearly two years after ascending to the British throne, King Charles III, at the age of 75, is set to receive a substantial increase in government subsidies, bringing a significant boost to the royal family’s annual income. The increase is a result of the Crown Estate’s soaring profits, a large portfolio of assets that includes over 191,000 acres of rural land, high-end properties in London, and retail and leisure businesses.
The Crown Estate, while not owned by the royal family, sees its profits controlled by the U.K. Treasury, which allocates a percentage to the royal family through the sovereign grant. This grant is used to fund official duties, including maintaining residences, paying staff, and financing official trips. The recent surge in profits from the Crown Estate, driven primarily by the sale of offshore wind farm leases in the U.K.’s seabeds, saw profits rise from £443 million ($572 million) in 2022-23 to £1.1 billion ($1.4 billion) in 2023-24.
Dan Labbad, the CEO of the Crown Estate, attributed the surge in profits to “years of commitment and investment into helping create the UK’s world-leading offshore wind sector, as well as the active management of our diverse and resilient portfolio.” The increased profits have led to the U.K. Treasury reducing the percentage of profits allocated to the royal family from 25% to 12%. Despite this reduction, the royal family will still receive nearly $60 million more for the 2025-2026 tax year.
This financial boost comes at a time when the U.K. is grappling with a cost-of-living crisis, drawing mixed reactions from the public. The additional funds are expected to help the royal family maintain their official duties and support various philanthropic endeavors. However, the significant increase in their income has sparked discussions about the appropriateness of such a rise amid widespread economic hardship.
The financial uplift coincides with a challenging year personally for King Charles and his family. Both Charles and his daughter-in-law, Kate, the Princess of Wales, have faced undisclosed cancer diagnoses. While Charles has returned to a modified schedule of public duties since late April, Kate has remained largely out of the public eye as she continues her treatment. These health challenges have undoubtedly impacted the royal family, making the additional financial support even more pertinent for managing their official responsibilities and personal wellbeing.
In a related development, the Duchy of Cornwall estate, which provides the primary income source for Prince William and Kate, also reported a significant income. William, the Prince of Wales, received $30 million from his first full year’s income from the estate. Established in 1337, the Duchy of Cornwall estate comprises land across Britain and is traditionally passed down to the heir to the throne. With King Charles’ ascension in 2022, the estate was handed down to William, adding to the financial stability of the future king.
As the royal family navigates these financial and personal changes, the public’s scrutiny and interest in their affairs remain high. The substantial increase in government subsidies highlights the ongoing importance and influence of the Crown Estate’s management and the royal family’s role within the United Kingdom’s socio-economic landscape. The additional funds will undoubtedly aid in the continuation of their official duties and philanthropic activities, despite the backdrop of national economic challenges and personal health battles.
