Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of ending the Sovereign Grant and redirecting those funds to help tackle increases in the cost-of-living for low income households.

Under the Sovereign Grant Act 2011, the Sovereign Grant is determined in accordance with a formula. That formula operates with a reference to a percentage of The Crown Estate’s profits two financial years previously. The percentage is currently set at 12 per cent. In exchange for the Sovereign Grant, the Monarch surrenders the revenue from The Crown Estate to the government – more than £4 billion over the last ten years.

Regarding support for low-income families, the government is announcing measures to support households who face the greatest hardships. This package of measures will improve economic security and resilience for those who need it most.

At Autumn Budget 2024, the Government announced the Fair Repayment Rate which lowers the cap on deductions in Universal Credit to 15 per cent of the standard allowance from April 2025. This will benefit 1.2 million households, with families expected to be better off by around £420 a year on average. This measure supports the government’s ambition to tackle child poverty – with 700,000 of the poorest families with children benefitting as a result of this change.

In addition, the Government will provide £1 billion (including Barnett impact) to extend the Household Support Fund in England, and Discretionary Housing Payments in England and Wales. This will help individuals and families facing the greatest hardship, including supporting them with the cost of essentials such as food, energy and housing. This builds on the previous investment of £500 million (including Barnett impact) to extend the Household Support Fund to 31 March 2025.