(PHOTO: MATT DUNHAM/ASSOCIATED PRESS)

How the royal family affords their lavish lifestyle

The royal family of the UK seems to live a lavish life but not many know how the royal family makes money and supports their lavish lifestyle. There are a couple of means of capital for the royal family including grants and tourism.

A majority of people who travel to the UK visit Buckingham Palace in hopes of seeing the royal family in-person. IN 2017, the British monarchy contributed an estimated £1.8 billion to the UK economy including £550 million in tourism.

Her Majesty The Queen addresses the UK and the Commonwealth in a special broadcast recorded at Windsor Castle. pic.twitter.com/HjO1uiV1Tm

— The Royal Family (@RoyalFamily) April 5, 2020

Though the royal family contributes billions to the UK economy, it’s expensive to run a royal household and Queen Elizabeth II isn’t exactly funding the royal lifestyle they’ve grown accustomed to. One of the main sources of the queen’s annual income is the Sovereign Grant, which supplements funds for the queen’s official duties including travel, entertainment, and maintenance of the royal palaces.

The Sovereign Grant is public money but is not as simple as each taxpayer paying their share and is funded by profits from a £13 billion real estate and property portfolio known as the Crown Estate. The Crown Estate is technically owned by the reigning monarch, currently Queen Elizabeth II, but the royal family doesn’t get to keep all the profits.

The profits from the Crown Estate first go to the treasury and the queen will receive 25% of profits each year over 10 years to fund the Sovereign Grant, an increased rate compared to the previous 15%.

In conversation with: @Dal_Dy_Dir

The Duke called in to check with a community farm based in Wales to understand how @NatEmergTrust funding has enabled them to continue supporting families, distribute food parcels and grow emergency supplies of vegetables #NETCoronavirusAppeal pic.twitter.com/VGlLN69L7N

— Kensington Palace (@KensingtonRoyal) April 12, 2020

By 2019, this fund adds up to over £82 million and will contribute to funding renovations to Buckingham Palace. With over 66 million citizens in the UK, the 2019 Sovereign Grants breaks down to £1 per citizen.

Though this form of funding is public knowledge, it is difficult to estimate the queen’s wealth as she legally doesn’t have to disclose information about her private accounts. Recent estimates believe Queen Elizabeth II has a personal net worth of £370 million. With most of the Sovereign Grant paying for her living expenses, her net worth is likely to keep growing.