The cost of the British monarchy has increased compared to the previous year, according to the annual financial report of the royal family. The expenses for the British royal family in the financial year 2022/23 have risen by five percent, marking the second consecutive year of increase.

During this period, £107.5 million (approximately €125 million) were spent on the monarchy, which is £5.1 million (€5.9 million) more than the previous year. Experts attribute this increase to factors such as the succession after the death of Queen Elizabeth II. The additional expenses were financed through reserves.

Michael Stevens, the Keeper of the Privy Purse and the palace’s financial chief, referred to the increased costs as “a year of mourning, change, and celebration unlike anything our nation has experienced in seven decades.”

Comprehensive Renovation of Buckingham Palace

The Royal Advisors also attribute the increased net expenses, at least in part, to the changes following the death of Elizabeth II in September 2022 and the ascension of her son, Charles III, in May 2023. However, the exact costs of Elizabeth’s funeral and Charles’ coronation are not included in the financial report.

Other reasons for the increased expenses, according to the report, include a ten-year program to modernize the wiring, plumbing, and heating system in Buckingham Palace, the official residence of the British monarch. Additionally, property management and maintenance costs have risen.

Personnel costs also increased by £3.4 million to £27.1 million. The workforce received a salary increase of five to six percent. On the other hand, the travel expenses of the royal family decreased by £600,000, and expenditures for estate maintenance were reduced.

£86 Million from the Public Purse

The “Sovereign Grant,” the annual payment received by the monarchy from the state budget, amounted to £86.3 million (approximately €100 million), the same as the previous year. Calculated per capita, the monarchy costs the citizens of the country around €1.40. The royal family also has other sources of income, such as the Duchies of Lancaster and Cornwall.

The royal household did not achieve the diversity target set in 2021 in the year 2022/23, according to the report. The target aimed for ten percent of the workforce in the royal household to belong to ethnic minorities. The figure for 2023 stood at 9.7 percent, the same as the previous year.

One of the cost-saving measures that likely had a noticeable impact on the staff was the reduction of heating in Buckingham Palace and other royal residences to 19 degrees Celsius during winter to reduce emissions and costs.