The Queen has been hit by rising costs and officials said she may need to ask the UK Government for more money to run her household.
The cost of fuel, home repairs and food has more than doubled the cost of maintaining the Queen’s position as head of state.
Over the past two decades, her taxpayer-funded Civil List payment of £7.9 million, approximately $17.5 million, has not increased and won’t be renegotiated for two more years.
According to News Limited, the Queen will not be able to balance her books if she does not received extra funding within the next three years.
Senior officials confirmed that they would have to ask for an increase in Civil List funding after what has been described as a black hole in the Buckingham Palace accounts.
A royal spokesman countered the speculation by stating that the Queen will not be in ruin without government intervention.
The spokeswoman spoke about the issue to News Limited.
"Like so many we have been hit by rising costs, but fortunately our reserves adequately cover the extra expenditure we are now facing.
"When the time comes we will, of course, be hoping for an increase - after all, there are few people in the country who haven't had a pay rise for 20 years."
Accountants still have £26 million of a £35 million pool kept for a rainy day and aides say there is enough money around to last until the renegotiation of the Queen’s payment.
The majority of her funding comes from the Civil List as well as grants for the maintenance of palaces and for travel and about 70 per cent of the Civil List revenue contributes to staff salaries. However, the rest of the money is used for entertaining.
The Queen currently receives £7.9 million a year and two senior MPs on the Public Accounts Committee said they have no sympathy for her plight, suggesting that her accounts should be publicly audited the same as government departments.
