The British royal family last year published its annual books of accounts for the year 2020-21, providing a fascinating insight into the regal life of the English royalty. The net worth of Queen Elizabeth II is $600 million, as per Celebrity Net Worth. Now the question is: where does she get the money from?
Queen Elizabeth receives an annual lump sum, a single payment by the government called the Sovereign Grant. As per the latest account disclosures, this amount stood at 86.3 million pounds for 2020.
Out of this, 51 million pounds were reserved as the core for funding official travels, property upkeep, and operating expenses of the Queen’s household, while the remaining amount would be spent towards, while the remaining amount was allocated towards refurbishing and reservicing the Buckingham Palace.
The report also dispels the notion that the royal family costs heavily on the common man’s pocket in the UK. Per the accounts, the core amount equates to just about 77 pence per person in the UK. The figure stands a bit higher at 1.29 pounds if re-servicing costs are also added.
In surrender of the revenues earned from the Crown Estate, public funds are deployed to meet the Queen’s official expenditure. If you’re wondering what the Crown Estate is, think Regent Street in London, UK seashores, and more. Managing real estate worth 14.1 billion pounds across the UK, the Crown Estate is held by the monarch during her period of reign. However, it is not the Queen's private property.
The Sovereign Grant, known as the Civil List till 2010, is actually a formal agreement between the government and King George 3, who, in 1730, agreed to give his income from Crown Estate in exchange for receiving an annual payout for him and his successors.
According to the disclosures made, the estate surplus for 2018-19 stood at 343.5 million pounds. Notably, the core sovereign grant is decided on the basis of 15 percent of the net surplus from the income account of the Crown Estate, two years previous. This means that even if there is a fall in the revenues from Crown Estate, which is on the scene given how the pandemic has affected travel and tourism, the Queen will continue to receive the grant, undiminished in value.
Apart from this, the Queen also earns money from her private estate of The Duchy of Lancaster. It spans over 18,000 hectares of land and raked in about 23 million pounds in 2020. The Duchy of Cornwall, which funds the private and public activities of the Prince of Wales, is also very extensive, consisting of land in 23 English counties and a solid portfolio of investments. This is the main source of income for Prince Charles, Camilla Parker Bowles, Prince William, and Kate Middleton.
The Queen's net worth also took a major hit by 20 million pounds in 2020, leaving her current net worth at almost 350 million pounds, as per the Sunday Times.
The COVID-19 pandemic will have an impact on the finances of the Sovereign Grant for a number of years, according to the Sovereign Grant report for 2020-21. "...whilst the Grant cannot go down, future growth is not guaranteed and the Covid-19 pandemic will doubtless have an impact on the results of the Crown Estate in the short term," the report said.
The largest source of income comes from The Royal Collection Trust, which receives no public funding and relies on visitor admissions and related activities for its income. "The enforced closure of the Occupied Royal Palaces as a result of the Covid-19 pandemic has temporarily removed its main source of income...," the report said, adding that the recovery in income is likely to be gradual following the re-opening of the palaces.
Some argue that the actual cost of royal upkeep is higher since the grant does not cover security, which is taken over by the Metropolitan police. The queen, in particular, has been a voluntary income tax and capital gains taxpayer on her private income since 1992, in addition to highlighting Britain on the global map and boosting tourism. However, many speculate that despite her properties of Balmoral and Sandringham, along with her extensive art collection, the royal family are far from being billionaires.
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