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Prince Harry and his wife, Meghan, will no longer use "royal highness" titles and won't receive public money for their royal duties, Buckingham Palace said Saturday.

In addition, the couple will pay back money spent renovating Frogmore Cottage, which will remain their home in the United Kingdom.

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A major refurbishing of the home, which is near Windsor Castle, cost British taxpayers 2.4 million pounds ($3.06 million), according to the royal family's accounts, which were released in June.

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The palace's announcement Saturday of the arrangement agreed to by Queen Elizabeth II and other royals comes after Harry and Meghan, Duke and Duchess of Sussex, announced plans earlier this month to "step back" from their roles as senior members of the British royal family and live a more independent life.

"Harry, Meghan and Archie will always be much loved members of my family," the queen said in a statement Saturday. "I recognize the challenges they have experienced as a result of intense scrutiny over the last two years and support their wish for a more independent life."

The queen said she hopes that Harry and Meghan will be able "to start building a happy and peaceful new life."

"I want to thank them for all their dedicated work across this country, the Commonwealth and beyond, and am particularly proud of how Meghan has so quickly become one of the family," she said.

The couple in their Jan. 8 announcement, which was posted on their Instagram account, said they will split their time between the U.K. and North America.

"This geographic balance will enable us to raise our son with an appreciation for the royal tradition into which he was born, while also providing our family with the space to focus on the next chapter, including the launch of our new charitable entity," the couple said.

Harry and Meghan also said they would continue to collaborate with members of the royal family, including the queen and Harry's father, Prince Charles.

Buckingham Palace echoed that plan in the statement Saturday,

"With The Queen’s blessing, the Sussexes will continue to maintain their private patronages and associations," the palace said. "While they can no longer formally represent The Queen, the Sussexes have made clear that everything they do will continue to uphold the values of Her Majesty."

The palace said "the new model will take effect" in the spring of 2020.

Saturday's announcement comes after the queen on Monday gave an initial reluctant blessing to Harry and Meghan's decision to "live a more independent life." She said in that statement she "would have preferred" that they remain "full-time working members of the royal family."