How do the British royal family earn their income
For centuries, the British Royal Family have stood their ground and moved with the changing tides of time. They have lived up to the expectations of the public and even after experiencing a drastic change in the country's political system, it has gracefully carried forward the traditions of the monarchy. But would it all have been possible without the riches and the pounds to facilitate it? Most probably not. So to get a deeper understanding of the royal finances, here's a look at how the British Royal Family gets their money.
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What is the source of income for the British Royal Family?
The British royals receive a mix of public and private money, which does not include the amount and assets that they received as inherited wealth. The three main sources of the royal family's income include the Sovereign Grant, the Duchy of Lancaster and Cornwall.
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The Sovereign Grant pays for the Queen's expenses
The Queen of England annually receives a lump sum of taxpayer's money called the Sovereign Grant. The amount is used to facilitate the Queen's official duties, and to maintain the occupied palaces. According to the official site of the British Royal Family, "funding for the Sovereign Grant comes from a percentage of the profits of the Crown Estate revenue." That means that the Queen receives the grant in exchange for giving up on all profits from the Crown Estate to the government.
As per reports, the grant amounted to 82.2 million pounds in the 2018-2019 fiscal year. However, in 2020, it was reported that the Queen's net worth dropped by 20 million pounds from the previous year.
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What is the Privy Purse and the Duchy of Lancaster?
The Privy Purse is the Queen's actual income which includes her estates and other assets that's been in the royal family for hundreds of years. Reportedly, in 2018, the Privy Purse brought in about 20 million pounds from the Duchy of Lancaster.
Apart from carrying out her expenses, the Queen also uses the money to pay her children, Prince Andrew, Prince Edward, and Princess Anne to perform their royal duties all around the world.
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Queen possesses other valuable assets too
When it comes to royal families, what good are they without their massive inheritance. The Queen owns widespread estates such as Balmoral and Sandringham Estates and also possesses an expansive art collection, and other valuable assets that were passed down by her ancestors.
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Prince Charles has his own source of income - The Duchy of Cornwall
The Duchy of Cornwall is yet another means of money that takes care of the expenses of the Prince of Wales, Charles and his heir that includes both the Duke and Duchess of Cambridge and Sussex along with the Duchess of Cornwall, Camilla Parker Bowles. Charles paid them a combined 5 million pounds in 2019. It has also been said that the Queen and the Prince of Wales have most of the authority over the royal finances.
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Prince Harry and Meghan Markle were 'financially cut off'
In one of the most highly anticipated and bombshell interviews of the year, Meghan Markle and Prince Harry sat down with the popular TV host and actress, Oprah Winfrey and spoke about how they were financially cut off from the British Royal Family.
In the interview, Prince Harry said, "My family literally cut me off financially, and I had to afford security for us."
He also revealed that he and his family had been living off of his share of the inheritance his mother, Princess Diana, left for him. Reportedly, Prince Harry received 13 billion dollars on turning 25. "Without that, we wouldn't have been able to do this," Harry added.
Additionally, the royal couple have also signed a deal with a digital streaming service, along with producing podcasts and document-series.
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