The British government is "throwing more money at a billionaire who doesn't need it" by boosting funding for King Charles III's monarchy, according to anti-monarchy campaigners.
The king's office announced in July that he was taking a pay cut but the news was quickly followed up by a story in The Guardian that he was, in fact, expecting a pay rise in 2025 of around 45 percent.
The confusion left Republic, Britain's anti-Monarchy campaign group, accusing the palace of PR trickery worthy of George Orwell's dystopian novel 1984.
Graham Smith, its chief executive, told Newsweek: "The spin was utterly dishonest and shameful and worked in the first instance but thankfully some journalists picked up on the fact it was entirely the opposite of the truth. It was Orwellian in its dishonesty and the fact that this is continuing to go up at all...it's already way over what it should be."
Britain's monarchy is funded by the government through an annual payment known as the Sovereign Grant, based on a percentage of profits from The Crown Estate.
The property portfolio has seen its profits rise due to investment in windfarms but Buckingham Palace in January told journalists the king wanted to turn down the extra money.
A statement read: "In view of the offshore energy windfall, the keeper of the privy purse has written to the prime minister and chancellor to share the King's wish that this windfall be directed for wider public good, rather than to the Sovereign Grant, through an appropriate reduction in the proportion of Crown Estate surplus that funds the Sovereign Grant."
In July, the Daily Mail quoted an unnamed official who said: "We are confident that we can balance our needs within the funds we have available to us...and we will not be asking the Treasury for more money."
A report by the U.K. Treasury outlines Charles' request that the money be pumped back into public services and gives the appearance of a pay cut as it describes how the funding of the monarchy is expected to drop from 25 percent of profits down to 12 percent of profits from The Crown Estate.
However, it also shows projected profits increasing from £442.6 million (about $565.6 million) in 2022-23 to over £1 billion ($1.2 billion) in 2023-24 and in 2024-25.
If these estimates prove accurate, the 12 percent figure will work out at around £125 million ($159 million) a year, a substantial increase on the £86 million ($109.8 million) the monarchy currently receives.
The funding is backdated two years so it will only turn up in palace accounts from 2025.
Some outlets, including GB News, put the increase down to refurbishment work on the palace, which may have been a factor in the percentage calculated, though the underlying reason why there is more money available appears to in fact be the boost in profits from windfarm projects.
Needless to say, at a time when many people in the United Kingdom are struggling to pay their bills due to inflation, total funding by the financial year 2025-26 will be more than four times what it was in 2012-13.
"It is evidence that the Sovereign Grant system is dysfunctional and needs to be scrapped," Smith said.
The news comes following months of strikes and pay negotiations for public sector workers, from teachers to train drivers and nurses.
"In the middle of a cost of living crisis when we can't apparently pay people properly and we can't fund everything, we can't look after families with more than two children, why are we throwing more money at a billionaire who doesn't need it," Smith said.
"I think it reflects very badly on Charles because he's just going along with it, he's accepting it and he could easily turn around and say this is ridiculous stop it."
The treasury report read: "The Royal Trustees recognise that the impact of reducing the percentage used to determine the 2024-25 Grant amount is likely to lead to the Grant being set at the same amount as the preceding year. The Grant level is then projected to increase significantly for 2025-26 and be maintained at a similar level in 2026-27."
Jack Royston is chief royal correspondent for Newsweek, based in London. You can find him on Twitter at @jack_royston and read his stories on Newsweek's The Royals Facebook page.
Do you have a question about King Charles III, William and Kate, Meghan and Harry, or their family that you would like our experienced royal correspondents to answer? Email royals@newsweek.com. We'd love to hear from you.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
About the writer
Jack Royston is Newsweek's Chief Royal Correspondent based in London, U.K. He reports on the British royal family—including King Charles ... Read more
To read how Newsweek uses AI as a newsroom tool, Click here.
