It was announced that Prince Andrew had reached an out-of-court settlement with Virginia Giuffre last week, after a civil sexual assault case was brought against him in the US.
The Prince has denied the allegations profusely and made no admission of liability, however accepted that Giuffre had suffered as a victim of abuse.
Although it is believed that the pay-out could range up to £12m, the size of the settlement remains unknown as the arrangement was confidential. Rumours of the hefty sum and substantial legal fees are causing concerns over who will be funding the settlement.
Royal finance expert, David McClure, said “If the figure does turn out to be of the order of £5m to £10m, I don’t think he has that money. And it’s more than likely the Queen will fork out some money.”
The Queen’s income is accumulated from a combination of public and private money. Last year, the Queen was given £86.3m by the UK Government for official royal running costs. This is known as a Sovereign Grant which is paid to the Queen annually.
Prince Andrew received £250,000 per year while working as a royal, however after facing a backlash on his interview with Emily Maitlis for BBC’s Newsnight in 2019, he stepped down from official royal duties. Currently, the Prince receives an armed forces pension which is estimated to be around £20,000.
It is thought that extra funds could be raised from selling a luxury chalet in the Swiss ski resort of Verbier. Prince Andrew and his ex-wife Sarah, Duchess of York, purchased the chalet for over £8m in 2015.
UK taxpayers are left frustrated over the lack of transparency over the settlement and how it will be funded. So far Buckingham Palace has refused to comment on the financing of the Prince’s legal case.