While making the recommendation for the increase, the NAO report also gives the royal household credit for reducing expenditure in real terms by scaling back spending. According to the figures real-term expenditure was £32.9million in the period of 2011-2012, compared to £72.6million in 1991-92.
The cutbacks have meant the Queen has repeatedly dipped into her savings and is said to be down to her last £1million, leaving the household vulnerable to "unexpected costs". Click link for full post from Hello Magazine.