UK taxpayers will bailout the Queen in a “golden ratchet” under new plans from the Tory Government.

The Treasury is planning to supplement the Sovereign Grant after the monarch’s land and property investments took a hit as a result of the coronavirus pandemic, according to the Daily Mail.

Elizabeth I’s income is drawn from a 25% share in the profits generated by the Crown Estate, which has announced losses amid the health crisis.

Her share of the Crown Estate profits in 2021-22 is expected to increase by 0.4% to £86.3million – a rise of £350,000 – because overall profits increased by 0.4% in 2019-20.

But with financial gains expected to plummet due to the pandemic, the Treasury has moved to protect the Queen’s purse, vowing to ensure her income for 2022-23 does not drop from the previous year.

A Treasury spokesman told the Mail: “In the event of a reduction in the Crown Estate's profits, the Sovereign Grant is set at the same level as the previous year.”

They insisted that if there was an unexpected uptick in profits, the grant will be capped to prevent the monarch from pocketing “excessive funding”, the Mail reported.

The spokesman added: “The Sovereign Grant funds the official business of the monarchy, and does not provide a private income to any member of the Royal Family.”

Campaign groups have questioned the decision, particularly at a time when millions of people face being plunged into unemployment and poverty.

Robert Palmer, of campaign group Tax Justice UK, said: “This royal bailout will be tough to stomach for people who love the Queen but have lost their jobs and businesses during the pandemic.”

Graham Smith, of the anti-monarchy group Republic, added: “The rules for the Sovereign Grant incorporate a 'golden ratchet' – once the grant goes up it can never come down, and the taxpayer loses out.”

A spokesman for Buckingham Palace commented: “The core Sovereign Grant supports the official duties of the Queen and the maintenance of the occupied royal palaces and is calculated on 15% of the income surplus of the Crown Estate.

“An additional 10% was agreed to fund a 10-year reservicing of Buckingham Palace ... Our Sovereign Grant report outlines where the money is spent, the scale of the work it supports and also the contribution made to the costs through income generation such as visitor admissions.”