Reason for royal family's 'scandalous' $172 million 2025 pay rise

The Royals are about to receive a hefty pay day in 2025, marking an actual record pay increase funded by British taxpayers, in a move deemed 'scandalous' by activist and CEO of Republic Graham Smith.

From April, the amount received via the Sovereign Grant, which is funded by the UK's public purse, will jump from $88 million AU to $260 million AU, but Palace officials have also made it clear that a significant portion of the extra money will be put towards the $728 million renovating bill for the long-planned Palace renovations.

“This is public money, all of this money comes from the government, at a time when the government is not able to properly fund schools, hospitals police … It is scandalous,” CEO of Republic Graham Smith told Town & Country. “Not only should it not be going up at all, it should be going down.”

What is the Sovereign Grant?

The Grant was established in 2012 to help the Royals pay for expenses related to their official duties, as well as property maintenance and staffing. It's paid annually by the Treasury and the level of funding is linked to the Government's revenue from the Crown Estate.

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When The Grant was first established, there was a larger working group of Royals — from Queen Elizabeth and Prince Philip, to Prince Harry and Prince Andrew, which required a larger funding. Now that the number of working Royals has significantly reduced, some believe that the public are getting "less" for their taxpayer money.

Royals' massive pay day: 'They are not above scrutiny'

“I do think that the monarchy in general does a good job for the country and is part of the glue that binds us all together but that doesn’t mean that as an institution, as individuals, they should be able to avoid criticism. They are not above scrutiny," royal author Richard Palmer said to Town & Country.

He did, however, go on to defend the family's 2025 increase.

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“I think you always have to put this into perspective and say that in terms of the whole government budget the cost of the royal family is a drop in the ocean,” Richard said “But it’s an important headline-grabbing moment when the amount that the royal family is going to be given is announced. The rise, particularly this year, has raised quite a few eyebrows.”

According to the Royal Family's official website a percentage of the profits of the Crown Estate also goes to charity.

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