Prince Harry and Meghan Markle will step back from their royal duties and will repay the millions they spent to refurbish their Frogmore Cottage residence, Buckingham Palace announced Saturday.

Under the new agreement, the couple will no longer receive public funds for royal duties and will give up their “royal highness” titles. They will maintain their private patronages and associations and will live at Frogmore Cottage when they are in the United Kingdom. Prince Harry will also give up his official military appointments.

The new arrangement will take effect in the spring, the palace said.

“Harry, Meghan and Archie will always be much loved members of my family,” Queen Elizabeth II said in a statement. “It is my whole family’s hope that today’s agreement allows them to start building a happy and peaceful new life.”

Prince Harry, 35, and Meghan Markle, 38, announced last week that they planned to become financially independent and divide their time between Britain and North America.

The couple had plans to discuss the new arrangement with Prince Charles, Harry’s father, and other members of the family later this month, but they disclosed their plans earlier than expected when they learned that a British tabloid was preparing a story about the discussions, the New York Times reported.