The Treasury will pay out a Sovereign Grant of £37.89m, up from £36.1m the previous year.
The grant, which funds the Queen's activities, comes from the £8.6bn Crown Estate, which includes most of Britain's coastline and royal properties like Windsor Castle.
All in this together?
Last year it made record profits - triggering a corresponding increase in the Queen's income.
Queen to get 5% pay rise in 2014/15. Sovereign Grant to increase by £1.79m to £37.89m as Crown Estate profits grow http://t.co/eoSuA8nRqN
— Paul Lewis (@paullewismoney) June 27, 2013
Under the 2011 Sovereign Grant Act, the Crown Estate profits are paid to the Treasury, which then pays 15% of them back to the Queen.
So it's official: the day after the Chancellor announces more sweeping cuts, the royals get yet another pay rise http://t.co/83yddXEwB7
— Republic (@RepublicStaff) June 27, 2013
Crown Estate chairman Sir Stuart Hampson said: "We are proud that another record Crown Estate performance will again make a strong contribution to the nation's finances."
On Thursday, Chancellor George Osborne announced a further £11.5bn of spending cuts, including a public sector pay freeze and delays to unemployment benefit that charities fear will drive people into the arms of payday loan companies and force them to turn to food banks.
Suggested For You
SUBSCRIBE AND FOLLOW
Get top stories and blog posts emailed to me each day. Newsletters may offer personalized content or advertisements.Learn more