King Charles will receive £99.9 million in core annual funding for the 2027-28 financial year, following a major change to the UK’s Sovereign Grant.
The funding supports the King’s official duties and the work of the Royal Household. It covers staff costs, official travel, and maintenance at occupied royal palaces. The money comes from profits generated by the Crown Estate. The Crown Estate belongs to the monarch, while the UK Treasury receives the remaining profits.
Treasury minister Dan Tomlinson confirmed the new funding level. He also said Charles has increased the number of official engagements he carries out.
The Sovereign Grant previously included a temporary increase to help fund the major renovation of Buckingham Palace. That additional funding will now decrease as the palace’s reservicing programme approaches completion.
Overall funding will fall from £137.9 million. However, core funding for the Royal Household will rise significantly. It will increase from £72.1 million in 2025-26 to £99.9 million for 2027-28.
The Crown Estate’s profits will provide around 20.5% of the Sovereign Grant, compared with the previous rate of 12%.
Tomlinson said the new funding level would help the Royal Household deal with maintenance backlogs. He also highlighted plans to replace ageing systems, improve cybersecurity and install more energy-efficient heating systems.
Royal palace maintenance costs have also increased. The government expects spending on palace refurbishment to reach £33.6 million next year, compared with £18 million in 2016-17.
Meanwhile, Charles faces changes within his Royal Household. His equerry Jonny Thompson is leaving after seven years of service. Buckingham Palace said the King and Queen were aware of his plans and appreciated his support.
Charles has also continued his summer break at Balmoral. He is expected to return to official duties with a meeting involving Pakistan’s national cricket team at Clarence House.
At the same time, Prince Harry, Meghan Markle and their children have returned to the UK after six years in the United States.
