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Bad news for King Charles
The Treasury has announced its decision to keep the 2024 sovereign grant, which pays for the monarch’s official duties, at £86 million — the same amount as the past three years.
This means that the Royal Family’s income has dropped by £12.3 million in real terms since 2021 as the affects of rising inflation are being felt across the UK.
In 2022, the late Queen Elizabeth II had to use savings to cover running costs and the refurbishment of Buckingham Palace, as she overspent the sovereign grant income by £16 million.
It is believed the limited finances are partly the reason why the King is attempting to reduce the costs of the Royal Family.
King Charles attempting to cut costs
It comes as a recent report by the Evening Standard, claimed that the King is making moves to slim down and modernise the monarchy. Charles allegedly wants to reduce the number of Royals who are financially dependent on the crown, particularly if they are not an active working member.
It is believed that the King will end subsidised rents for Royals, even for those who are working members. Charles is also apparently taking a 'quality over quantity' approach to staffing, cutting back on staff but paying them more so that he gets the best people for the jobs.
The Times: 'Real-terms drop in King’s income as grant frozen'
Evening Standard: 'The King’s five-year plan to shake up the firm'