how much does the royal family cost the taxpayer

The narrow “official” cost of the royal family to UK taxpayers is a little under £90 million a year, but broader estimates that include security and other hidden costs put the figure closer to £500 million a year or more.

Official cost: the Sovereign Grant

The main, headline figure is the Sovereign Grant, which funds the royal family’s official duties, palaces, and travel.

For 2024–25, the Sovereign Grant is about £86.3 million , similar to the previous year.

From 2025–26 it is set to rise to around £132 million , an increase of more than 50%, largely to help fund Buckingham Palace’s long-running refurbishment programme.

On a per-person basis, this is often presented as roughly £1–£2 per UK resident per year , which the palace uses as a key defence of the monarchy’s value.

The “half‑billion” claim

Critics argue that the official grant ignores large additional costs that still ultimately fall on taxpayers.

Campaign group Republic estimates the “true” annual cost of the monarchy at around £500–510 million once security, lost revenues and other state support are included.

Their breakdown (based on recent years) includes: the Sovereign Grant and extra spending, use of state-owned royal residences, profits from the Duchies of Cornwall and Lancaster, local council spending on royal events, policing and security, and other government department costs.

That estimate is controversial but widely quoted, and it underpins Republic’s “Half Billion Royals” campaign.

What gets counted – and what doesn’t

There’s a big gap between what the palace counts and what republicans count because they define “cost to the taxpayer” differently.

Included in the official figure:
- Staff salaries for the Royal Household.
- Upkeep of occupied palaces (like Buckingham Palace and Windsor Castle) used for official duties.
- Official travel for engagements in the UK and abroad.

Usually excluded or opaque:
- Security and specialist policing for royals and major events, estimated by outsiders at up to £100–150 million a year, but not officially published.

* Opportunity cost of royal residences that could otherwise generate commercial income if not reserved for royal use.

* Indirect tax privileges, such as exemptions from some inheritance tax rules.

Because many of these items are not fully disclosed, any “true cost” estimate above the Sovereign Grant involves some assumptions.

Recent trend and political debate

In the mid‑2020s, rising costs have collided with a cost‑of‑living crisis and welfare squeezes, making the monarchy’s spending a hotter political topic.

The jump in the grant to around £132 million in 2025–26 has prompted criticism that the monarchy is getting a big raise while public services are under pressure.

Campaigners argue that if the government is telling people to accept “tough choices”, the royals should not be insulated from cuts, especially while hundreds of millions go into palace renovations and ceremonial events.

Supporters counter that the monarchy is a relatively small line in the national budget and provides soft power and tourism benefits that are hard to quantify but politically useful.