04:14AM, Monday 01 July 2013
The Queen cost taxpayers 2.6 per cent more last year compared to 2011/12 under the new Sovereign Grant funding system.
Expenditure for the royal family in 2012/13 was revealed on Friday in the first Sovereign Grant Annual Report.
The cost rose £900,000 to £33.3 million, up from £32.4 million in 2011/12, but has reduced by £3million compared to five years ago.
Among cash spent was £800,000 on a maintenance project at Windsor Castle for external repairs to a dormitory roof, which was finished in May.
And £300,000 was spent on ongoing repairs at 1868-built Victoria and Albert Mausoleum in Frogmore House, which was placed on the 'at risk' register last year by English Heritage.
Sir Alan Reid, Keeper of the Privy Purse, said the Royal Household had achieved a 'real terms reduction' in expenditure.
He said: "The Royal Household has continued to reduce its expenditure funded by the taxpayer in successive years since 2008/9 achieving a real terms reduction of 24 per cent over the last five years."
Under new arrangements Her Majesty's income is linked to profits of the Crown Estate and from 2013/14 she will receive 15 per cent of any profits based on the financial year two years ago.
The net surplus on the estate in 2011/12 was £240.2 million producing a grant of £36.1 million for 2013/14.
And the Queen's income is set to rise by five per cent in 2014/15 to £37.9 million after the estate announced profits of £253million for 2012/13.
Sir Alan added: "A significant part of the increase to the Sovereign Grant in 2013/14, supplemented by further income generation, will be used to tackle a backlog in essential property maintenance at the working royal palaces."
Until last year the monarch was funded by a combination of civil list payments and from government grants.
The grant covers the Queen's travel, PR, and living costs, along with the upkeep of the country's palaces.
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