What is the Sovereign Grant that funds the British royal family?

The British royal family’s official duties are largely funded through the Sovereign Grant, an annual payment from the government calculated as a percentage of profits from the Crown Estate, which comprises vast tracts of land and most of Britain’s seabed.

The Crown Estate legally belongs to the Crown, but since 1760 the monarch has given up its revenue in exchange for the annual grant, and the estate is now run as an independent commercial business. The Sovereign Grant is currently set at 12% of Crown Estate profits, which have risen in recent years due to offshore wind farm licences. It stood at £132.1 million ($174.5 million) in 2025/26 and will rise to £137.9 million in the current financial year, according to a report by Global Banking & Finance Review.

From 2027 to 2032, the grant will be cut to £100 million annually, partly because the £369 million refurbishment of Buckingham Palace will be complete and partly because Crown Estate profits are expected to fall as offshore wind lease revenues drop.

The Sovereign Grant covers the upkeep of royal palaces, other residences and historic buildings, along with royal travel expenses. It is not the personal income of the royal family, which also draws on income from the Duchy of Lancaster and the Duchy of Cornwall, along with King Charles III’s private estates.