Funding for the Royal Family will increase over the next 10 years to fund an urgent multimillion-pound renovation of Buckingham Palace.

A major refit costing £369m is needed to "future-proof" the royal residence, officials said.

The Government has agreed to pay the Queen more money - an increase of 66% in her annual sovereign grant - to cover the costs.

Image: Ageing cables, lead piping, wiring and boilers need to be replaced

A statement from the palace said: "The 10-year phased refit will address the essential building services on which the palace depends.

"Miles of ageing cables, lead piping, electrical wiring and boilers will be replaced, many for the first time in 60 years.


"An independent specialist report concluded that without urgent work there is a risk of serious damage to the palace and the precious Royal Collection items it houses from, amongst other scenarios, fire and water damage."

Work to improve the palace will see 100 miles of electrical cabling being replaced, along with 6,500 electrical sockets, 5,000 light fittings, 330 fuse boxes and 2,500 radiators.

Some 30,000 square metres of floorboards - the equivalent of 3.5 football pitches - will be taken up.

Image: The palace is 'at risk of serious damage' without the improvements

The work will be funded by a temporary 10-year uplift in the Sovereign Grant, from 15% to 25%.

The Sovereign Grant is the allowance provided by the Government every year to fund the Queen in her official duties.

The money comes through the crown estate, a portfolio of land and buildings which belong to the monarchy but cannot be sold by them, and the profits go to the Treasury.

The Queen was previously given back 15% of those profits but under the new agreement this will increase to 25%.

Last year, that amounted to £40.1m, or 62p for every person in the UK.

The change in arrangements follows a review by the three Royal trustees: the Prime Minister, the Chancellor and the keeper of the privy purse.

It had been proposed that the Queen may have to move out of Buckingham Palace while work takes place, but she will now stay for the duration.

Major events such as garden parties, state visits, investitures and changing the guard will not be affected.

Image: The 10-year plan is said to be the 'most cost-effective way' to fund the work

Deputy Keeper of the Privy Purse and accounting officer to the programme Mike Stevens described the plan as the "most cost-effective way" to fund the project, "by synchronising the release of funds with the phased approach to carrying out the physical works".

Master of The Queen's Household Tony Johnstone-Burt said the refurbishment would ensure the palace is "fit for purpose" until 2067.

The upgrade will lead to longer summer opening hours and more private tours, which could help generate an extra £3.4m a year.