The Queen has accepted a pay freeze next year, George Osborne announced in the Budget yesterday.
The Civil List, which pays for the Queen to carry out her duties, will remain unchanged at £7.9m. The monarch has received the same annual sum for 20 years.
The chancellor said Her Majesty has given her full agreement to the freeze. “I will propose a new means of consolidated support for her Majesty for the future at a later date,” he said.
He paid tribute to the Queen’s “loyal service and immense contribution to public life”.
The royal household has also agreed to subject itself to scrutiny by the National Audit Office and the Commons Public Accounts Committee, bringing it in line with all other government spending for the first time.
Around 70 per cent of the Civil List funding pays for staffing costs.
Pressure group Republic welcomed the proposals. “The crucial issue is transparency and accountability,” said spokesperson Graham Smith.
“It would be no progress at all if they just gave the palace a different lump sum each year without anyone being held accountable for how that money is spent.”