King Charles III and the rest of the royal family are set to get a raise.
Despite some changes in how the money paid to the the royals by the UK government is calculated, the royals’ take will likely jump “significantly” in the years to come, CNBC reported, citing a review of the annual Sovereign Grant.
For 2022-2023, the grant was worth about $96 million, the same it was for the previous year.
The amount will remain steady for 2024-2025, but is expected to rise after that, the BBC reported.
The eye-popping amounts, which do not account for all of the royals’ income, are determined with a formula based on the percentage of the profits from the Crown Estate.
That’s the name for the vast collection of hereditary assets that belong to the monarch, from Buckingham Palace in London to Balmoral Castle in Scotland, where Queen Elizabeth II died last year, and multiple other estates along with extensive portions of the coastline and seabed of Britain, Wales and Northern Ireland.
All told, the portfolio is worth $20.5 billion.
Six new offshore wind farms, worth about $1.1 billion, generated “substantial additional income” and helped drive up the total value of the estate in recent years.
The profits from the estate, which is only the king’s property during his reign but not considered private property, go to the nation’s treasury, which doles out the funds for the Sovereign Grant.
Thanks to those increased earnings, the percentage of profit the royals get will be slashed to 12 percent of the estate’s earnings, from the current 25 percent.
But even with the percentage cut, the royals will see a windfall in the future because of the holdings are generating such a surge in profit, CNBC said.
The royal family is forecast to generate profits of around $1.30 billion from the crown estate in 2023- 2024 and $1.35 billion in 2024-2025, according to the latest report from the royal trustees on the Sovereign Grant.
British Prime Minister Rishi Sunak and Finance Minister Jeremy Hunt are the so-called “royal trustees” in charge of deciding how much money the royals should receive,
As a result of the “golden ratchet” clause implemented in 2011, funding for the royal family can increase as profits rise, but can’t be less than the previous year.
The British government has doled out money to the royal family since 1760 and consolidated it into the sovereign grant in 2012.
The funds from the grant are used to pay for the upkeep and operations of the royal properties, including paying staff and doing repairs.
The cut in the percentage reflects in part a temporary implemented in 2017 to pay for renovations at Buckingham Palace.