King Charles III is currently covering the rental costs for residences occupied by his nieces, Princess Beatrice and Princess Eugenie, despite neither being working members of the Royal Family. Investigations by the National Audit Office (NAO) found that the sisters live in royal residences—Beatrice in a four-bedroom apartment at St James’s Palace and Eugenie in a three-bedroom cottage at Kensington Palace—where rents are discounted by up to 50% and based on valuations considered outdated. While specific rental amounts have not been disclosed for privacy reasons, the payments are made from the Privy Purse, which draws from the monarch’s private Duchy of Lancaster income.

The Duchy of Lancaster, an extensive portfolio including land across Lancashire and Yorkshire as well as London properties, was valued at £679 million as of March 2025 and generated annual profits of £24.4 million. The rental costs for Beatrice and Eugenie’s properties, along with those for Prince Michael of Kent and his wife Marie-Christine’s residence at Kensington Palace, are among arrangements that date back to Queen Elizabeth II’s reign. Despite a 2008 Buckingham Palace announcement that working royals should be subsidised by the Duchy, the King has continued to cover these bills for non-working relatives as a personal arrangement.

Princess Beatrice, 37, and Eugenie, 36, both have private lives and careers outside of full-time royal duties. Beatrice has held roles in the technology sector and is married to developer Edoardo Mapello Mozzi, with whom she lives in a £3 million home in Oxfordshire. Eugenie, an art gallery director, resides primarily in Portugal with her husband Jack Brooksbank, a marketing professional, and their children.

The report also highlights matters relating to their father, Andrew Mountbatten-Windsor, who was stripped of his royal titles and asked to vacate Royal Lodge earlier this year. Despite leaving the lodge in February 2026, Andrew reportedly held a portfolio of 12 royal properties that were leased or rented as of that time. He paid a nominal "peppercorn" rent for Royal Lodge for decades and rented out three properties on the estate for undisclosed income. The NAO suggested he could be entitled to compensation of up to £488,000 for early surrender of Royal Lodge, though this amount may be offset by any required restoration costs.

The continuing subsidisation of non-working royals has sparked criticism. Former Liberal Democrat minister Norman Baker described the arrangements as “outrageous” and indicative of “total contempt for the taxpayer,” particularly concerning Andrew’s heavily discounted rent and subletting activities. Public commentary suggests that while the King’s support for his family is acknowledged, the use of public funds to cover rent for royals who maintain private residences and careers is increasingly questioned amid economic pressures faced by ordinary households.

Buckingham Palace has stated it hopes the NAO’s findings will provide clarity and context around these issues. The Crown Estate also indicated a willingness to engage with Members of Parliament as parliamentary committees prepare to scrutinize the report further. The situation underscores ongoing debates about the balance of tradition, financial transparency, and public accountability within the modern British monarchy.