King Charles III is financing the residential rents of non-working royals Princess Beatrice and Princess Eugenie using his private income from the Duchy of Lancaster, according to a National Audit Office (NAO) report released on June 5, 2026.
The financial disclosure comes amid heightened public scrutiny regarding taxpayer-funded benefits for the royal family following the arrest of Andrew Mountbatten-Windsor.
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The audit revealed that the monarch covers the market rent for Eugenie's Ivy Cottage at Kensington Palace and Beatrice's apartment in St James's Palace.
Additionally, the NAO report showed that the King pays the Kensington Palace apartment rent for non-working royals Prince and Princess Michael of Kent.
The document also disclosed for the first time in twenty years that Andrew and his staff maintained 12 properties owned by the Crown Estate or the Royal Household.
Palace Response and Criticism
Buckingham Palace addressed the findings by expressing support for the review and the financial clarity it provides to the public.
"We were grateful for it was in line with the Royal Household's commitment to transparency," said a Buckingham Palace spokesman.
The palace administration noted that property management within the royal estates depends on multiple operational factors.
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"We hope that the findings will help correct, clarify or contextualise a number of points regarding royal properties," the spokesman added.
The official statement concluded by explaining the standard procedures for estate occupancy.
"As the report notes, arrangements for properties managed by the Royal Household vary based on a number of factors to ensure residences are filled appropriately, depending on their location, tenants and purpose," the spokesman added.
Critics of royal spending criticized the subsidization of properties for family members who do not perform official public duties.
"Andrew's daughters Eugenie and Beatrice have been benefiting from hugely generous sweetheart deals for their accommodation, paid for out of Duchy of Lancaster money," explained Norman Baker, former Liberal Democrat minister and expert on royal finances.
The former minister stated that these housing arrangements directly impact public funds.
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"And that means that less profit has been passed to the Treasury from the Duchy than should have been," Baker explained.
