The King has agreed to give up his share of the Crown Estate’s multi-billion-pound profit from the sale of wind farm rights.
The royal family’s income, which is linked to an entitlement to 25% of the estate’s profit, will be effectively frozen for two years.
Instead, the share will fall to 12%. The Treasury said that without the changes, the royal household’s income would have been £24m higher next year and £130m higher in both 2025 and 2026.
Crown Estate profit in 2023-24 is expected to be £1.04bn and £1.05bn in 2024-25.
Profit in 2022-23 was £442.6m, meaning had the 25% formula continued, the monarchy would have received £110.7m in 2024-25.
At the new 12% formula, the monarchy would have received £53.1m, but because it cannot be less than the previous year, it will remain at the present £86.3m.
The deal will still see the royal income rise. Under the new deal, the sovereign grant will remain frozen at £86.3m for the next two years before rising by an estimated £40m for two years after that.
The increase will be temporary, palace officials say, and will be used to complete the renovations of Buckingham Palace that have already been signed off by parliament.
