The Queen granted a $10 million pay rise

Queen Elizabeth is about to get a $10 million pay rise in the form of an increase to her yearly "sovereign grant".

Queen Elizabeth II arriving at the funeral of Countess Mountbatten of Burma at St Paul's Church, Knightsbridge, London, June 27, 2017. Source: Press Association

The Queen is set to receive an increase in the official funding she receives each year.

Buckingham Palace says the "sovereign grant" will be 82.2 million GBP ($A137.7 million) next year - an increase of more than 6 million GBP ($10 million).

The increase is derived from a formula based on the financial performance of the Crown Estate, which has extensive real estate holdings throughout Britain.

Alan Reid, Keeper of the Privy Purse, says the newly released accounts show that the royal family costs each taxpayer about 65 pence per year, representing the cost of a first-class stamp.

"Consider that against what the queen does and represents for this country, I believe it represents excellent value for money," he says.

Funding levels are also being increased to cover a planned 10-year refurbishment of Buckingham Palace.