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The Queen is due an inflation-busting 18% pay rise with a bumper payout of £16MILLION from the Duchy of Lancaster.

She will get a £2.4 million increase to fund her official and private expenditure, accounts posted online for the year ending March 2015 reveal.

This money is on top of the annual Sovereign Grant she gets from the taxpayer, which will go up from £37.9 million to £40.1 million for the year ending March 2016.

The Queen’s raise comes as Chancellor George Osborne has slapped a 1% pay rise freeze on public sector workers, including nurses and teachers.

The Queen has three main strands of income - the Sovereign Grant, Duchy of Lancaster and her private investments which she is not required to make public.

(Image: Getty)

The Duchy of Lancaster is land of around 18,000 hectares in England and Wales which was set up in 1399 to provide an income for the Sovereign.

The Queen has no say in how it is run but she collects all its net profits and uses them to pay for a mixture of private and official expenditure, including the offices of Prince Andrew, Prince Edward and Princess Anne and the upkeep of Balmoral Castle.

It is generally considered to be her private income but republicans argue that it is money that would go to the Treasury if we didn’t have a Monarchy.

The latest Duchy of Lancaster financial report says: “The Net surplus delivered to the Keeper of the Privy Purse also increased by 18% to £16.0m (2014: £13.6m).

“The strong performance for the years has been spread across all portfolios.”

(Image: Getty)

The accounts also show that the value of the estate rose 6.8% to £472.1 million from £442 million in 2014.

Nathan Thompson, CEO and Clerk of the Duchy Council, said that the performance for the year has been strong as major redevelopment projects have been completed and the Duchy is starting to benefit from structural changes implemented last year.

He said: “The strong performance for the year has been spread across all the portfolios and asset classes.

“The new team is working well together, the markets are in our favour and we look forward to the year ahead.”

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The pay rise is more than double last year’s increase where the Queen received a rise of 8.5% from £12.5 million in the year ending 2013 to £13.6 million in the year ending 2014.

The Queen voluntarily pays income tax on the Duchy profits but the accounts do not say how much.

Republic's Chief Executive Graham Smith said: “This adds to our demands for radical reform in the way the Monarchy is funded.

“We ought to put the Queen on a salary and all that money should go to the Treasury and be spent on services and perhaps put back into the community.”