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Prince Harry and Meghan: Where do they get their money? Prince Harry and Meghan: Where do they get their money?
(12 days later)
The Duke and Duchess of Sussex have announced they are stepping back as senior royals and intend to become financially independent. Buckingham Palace has announced the Duke and Duchess of Sussex "will no longer receive public funds for royal duties".
But how are they currently funded, and what might this new arrangement look like? It follows the revelation that the pair are to step back as senior royals and intend to become financially independent. But where do they now get their money, and what might this new arrangement look like?
Who pays for Harry and Meghan at the moment? What does being 'financially independent' mean?
The couple say that about 95% of their income comes from the Prince of Wales. He pays for the public duties of Prince Harry and Meghan, as well as the Duke and Duchess of Cambridge, and some of their private costs. According to the Sussexes website, 95% of their income comes from Prince Charles's income from the Duchy of Cornwall, a vast portfolio of property and financial investments, which brought in £21.6m last year.
In total, this funding - in the year Meghan officially joined the Royal Family - stood at just over £5m in 2018-19. Money from the Duchy - just over £5m in total in 2018-19 - pays for the public duties of Prince Harry and Meghan, as well as the Duke and Duchess of Cambridge, and some of their private costs.
The money comes from Prince Charles's income from the Duchy of Cornwall, a vast portfolio of property and financial investments, which brought in £21.6m last year. This revenue is used to "fund the public, private and charitable activities of The Duke and his children". It is understood the couple will continue to receive money from Harry's father under the new agreement, although it is unclear whether this will come from the Duchy, his personal wealth, or a combination of the two.
In addition, about 5% of the Sussexes' income comes from the Sovereign Grant, according to their website. This money is paid from the government to the Royal Family to cover expenses for official duties and looking after royal palaces. The grant is worth £82.4m in this financial year. However, the pair will stop receiving money from the taxpayer-funded Sovereign Grant, which makes up the other 5% of their income.
The Sovereign Grant is funded by profits from the Crown Estate - commercial properties owned by the Crown. This grant is paid from the government to the Royal Family to cover expenses for official duties and looking after royal palaces. It is worth a total of £82.4m this financial year and is funded by profits from the Crown Estate - commercial properties owned by the Crown.
These figures do not include security costs, which are met separately. This, and all the other terms of the arrangement, are thought to be up for review by Harry, Meghan and the senior royals in a year's time.
Additionally, the Duke and Duchess are to repay the £2.4m cost of renovating their home, Frogmore Cottage in Windsor, a bill initially footed by the UK taxpayer. They will also pay a "commercial rent" on the property.
What is the Crown Estate?
What other wealth do they have?What other wealth do they have?
Both the duke and duchess have considerable personal wealth. Princes William and Harry received the bulk of the £13m fortune left by their mother Princess Diana.Both the duke and duchess have considerable personal wealth. Princes William and Harry received the bulk of the £13m fortune left by their mother Princess Diana.
Prince Harry is also thought to have been left millions of pounds by his great-grandmother, the Queen Mother, says BBC royal correspondent Nick Witchell.Prince Harry is also thought to have been left millions of pounds by his great-grandmother, the Queen Mother, says BBC royal correspondent Nick Witchell.
During her acting career, the Duchess of Sussex earned a reported payment of $50,000 (£38,300) per episode for the legal drama Suits.During her acting career, the Duchess of Sussex earned a reported payment of $50,000 (£38,300) per episode for the legal drama Suits.
She also ran a lifestyle blog, and designed her own fashion line for a Canadian brand.She also ran a lifestyle blog, and designed her own fashion line for a Canadian brand.
What does being 'financially independent' mean? It is not known whether the couple will continue to be given a security detail paid for by the taxpayer-funded Metropolitan Police, which does not disclose the costs. Their intention to travel back and forth from North America would be likely to add to this cost, but it is possible they will pay towards this.
On their website, Harry and Meghan say they will no longer receive funding through the Sovereign Grant, "thereby making them members of the Royal Family with financial independence". However, the grant only provides 5% of their income and it is unclear whether they will give up their other sources of funding.
The couple will continue to be given a security detail paid for by the taxpayer-funded Metropolitan Police, which does not disclose the costs involved.
The couple's intention to travel back and forth from North America would be likely to add to this cost, but it is possible they will pay towards this - although it will be a very big bill.
The couple say they have always funded their private travel, and this will continue to be the case. This suggests travel taken for official engagements will still be paid for by the taxpayer.
They plan to keep hold of their UK home, Frogmore Cottage in Windsor, which was renovated at the cost of £2.4m to the taxpayer last year.
Are royals allowed to make their own money?Are royals allowed to make their own money?
Harry and Meghan say that as senior royals, they are not allowed to earn their own income. As they will no longer be "working royals," Harry and Meghan will be free to make their own income.
The pair point out that there are other current members of the Royal Family who have full-time jobs. But the palace says the pair "have made clear that everything they do will continue to uphold the values of Her Majesty".
Princess Beatrice and Princess Eugenie, for example, are not "working royals". That means they do not carry out official public duties as members of the Royal Family. The couple applied to trademark the Sussex Royal brand last summer, raising the possibility of launching their own lines of products, from beauty to clothing.
Princess Beatrice works in finance, while Princess Eugenie is a director at an art gallery. But now they have officially stepped back, and agreed not to use their royal titles, using this branding may be seen as at odds with those values.
However, some costs are still met by the taxpayer, such as the security of Princess Eugenie's wedding in 2018. Exactly how Harry and Meghan will finance themselves in future is up for debate, according to royal finances expert David McClure.
Exactly how Harry and Meghan will finance themselves in future is up for debate, according to David McClure, author of a book on royal finances. "I suppose they could get money from writing books, a more likely source is from television. There has been talk about Harry and Meghan doing a deal with Oprah Winfrey," he told the BBC.
"I suppose they could get money from writing books, a more likely source is from television. There has been talk about Harry and Meghan doing a deal with Oprah Winfrey, so that's a possible way of making money," he told the BBC.
What is the Crown Estate?
What could their next steps be?
In their statement, the couple said that launching a new charity would become one of their future priorities. This follows their decision to leave the Royal Foundation last year, which they shared with the Duke and Duchess of Cambridge. Set up in 2009, the Royal Foundation focuses on causes close to the princes' hearts, including the armed forces, conservation and mental health.
In June the pair trademarked the Royal Sussex brand, applying it to dozens of items and services from pencil cases to sport activities and education training.
As one of the most famous couples in the world, their brand has the potential to be highly lucrative. Their joint Instagram account @sussexroyal has more than 10 million followers, while Meghan was the most Googled person in the UK in 2018.As one of the most famous couples in the world, their brand has the potential to be highly lucrative. Their joint Instagram account @sussexroyal has more than 10 million followers, while Meghan was the most Googled person in the UK in 2018.