It seems no one has been immune to money struggles over the past few years. Even the British royal family's finances have taken a hit. Queen Elizabeth and her children rely on a number of income sources to pay for their extravagant lifestyles, including taxpayer money from the government, and also private moneymakers that line their pockets for personal expenses.
No area of the monarchy's budget has been unaffected by the strange time period we're in. They've seen a loss of revenue on multiple sides, and it could cause short-term and even long-term damage to their financial situation. Here's why the royal family could be struggling right now, just like all of us are.
(Although, let's be real, they're still in a much better position than most.)
Divorces Have Siphoned Money for Decades
Over the years, the royal divorces have been leaching funds from Queen Elizabeth's pockets. Apparently, the Queen was tasked with ponying up the money in both Prince Charles' and Prince Andrew's divorce settlements. Charles and Princess Diana's split was extremely expensive, prompting Charles to borrow around $70 million from his mother.
With Tourism Down, So Are the Royal Funds
The last few years have been rough for almost everyone, and the royal family is feeling the financial squeeze, too. They rely to some extent on tourism money brought in by visitors to their various public residences, like Buckingham Palace. In a good year for the royal residence, ticket sales and gift shop purchases can generate more than $50 million, but the palaces were shuttered amid the health crisis, putting a dent in the royal coffers.
Personal Estates Were Closed to Tourism
The money that the royal family makes from their public estates — the ones literally owned by the British public — goes into a general fund called the Crown Estate, most of which goes back to the government. But the Queen also privately owns some of her residences — including Balmoral Castle and Sandringham — and she used to get to keep the tourism money from those places outright. In 2020, these estates were closed to visitors for a good portion of the year, and that also created a painful loss.
Government Stipend
It's true that the Queen and her family can rely on government assistance for many of their costs. But Newsweek reports that the amount of money the royals get directly correlates to how much they bring in. Without making as much money from tourism, their government stipend may be much lower. In fact, a Buckingham Palace spokesperson told Newsweek in 2020, "The whole country is very likely to be impacted financially by [the pandemic] and the Royal Household is no exception."
The Royal Budget Will Be Shaken Up
Whatever money the Queen does receive from the government will likely have to be allocated differently than in previous years. Some tough decisions will have to be made to cut costs in certain areas since they're definitely not going to have as much to spend as usual. That will affect everyone, from the royal staff to the royals themselves.
Jobs May Be Cut as a Result
Royal finance expert David McClure told Express that some royal jobs may be slashed to make up gaps in the budget. That could include cutting some extraneous Buckingham Palace staff members, as well as some of the Tower of London's ceremonial guards. Unemployment worldwide has been on the rise due to the chaos of the last few years, and it seems that the royal teams are not above those same concerns. The economy may be slowly improving, but the threat of budget cuts still looms.
Even Some Working Royals Could Lose Their Jobs
McClure said that it's not just the staff who may have to worry about job security. "On a broader level, if the royal family really wanted to cut costs, the best way is to have fewer working royals," he said. The monarchy has already slimmed down considerably over the years, but now may really be the time to cut down to those core royals and phase the other ones out, like Princesses Eugenie and Beatrice.
The Royals May Do Fewer In-Person Events
It's expensive for Kate Middleton to show up at a charity event. (The royals must pay for security costs, as well as money for the Duchess of Cambridge to be styled and dressed for the outing.) One way to cut down on spending is to do what they've already been doing: virtual meetings via Zoom. McClure said to expect more of these as the royals keep the budget down.
There Are Fewer Royal Tours
It's already pricey to send Kate down the street to an event in London, so for a while, global tours were definitely a no-go. And now, we may see the royals going places less often, since it's incredibly expensive to fly them to different countries, dress them for the occasion, pay for security, and pay for their accommodations.
Basically, Essential Costs Are a Priority
When tightening a budget, the first things to go are the nonessentials. The same seemed to happen for the royal budget in 2020. According to The Sun, an email from the Lord Chamberlain, head of the royal household, stated, "Many projects have been halted and all but essential expenditure has been suspended." That reportedly includes planned Buckingham Palace renovations, and any short-term hiring.
There's no doubt the royals are still feeling this loss today.
The Duchies Have Also Suffered
The Queen and Prince Charles are both in command of duchies, land and real estate holdings that drive a lot of their personal income. Express reported that the loss of duchy revenue for the Queen and the Prince of Wales will impact them — not just in the short-term, but also in the near future. It will take a while for things to right themselves.
Charles Uses the Duchy of Cornwall To Fund His Whole Life
Charles doesn't actually take much taxpayer money. He funds most of his endeavors with his private earnings from the Duchy of Cornwall. He also uses that money to pay for his son and his family's expenses, though it seems Prince Harry has officially been cut off. So if the duchy takes a big hit, it doesn't just affect Charles and wife Camilla, it can affect his children and grandchildren, too.
Check out our Meghan Markle page for all the latest news about Meghan, Prince Harry, and their growing family.
Charles Is Already Paying More Than Usual
When Prince Harry and Meghan Markle were still working royals, their security costs were covered by the royal wallet. But after they struck out on their own, Charles footed the bill — and though Harry and Meghan are now self-funded, it was money Charles probably didn't expect to be shelling out.
Ultimately, the Royals Will Probably Be Fine
To suggest that the royals can ever truly be hurt by a short-term or near-future financial crisis is nonsensical. Unlike the majority of regular people, the royals have millions of dollars to their names and can weather pretty much any storm. Sure, they may be making less right now, but they will bounce back. The Queen alone has a net worth of $530 million, Charles is worth anywhere from $100 million to $400 million, and William has $40 million to his name. They're fine, and they will be fine. They'll just momentarily be slightly less rich.
