Queen Elizabeth is to pay £125,00 a year to keep Princess Michael of Kent and her husband at Kensington Palace.
The British monarch is to delve into her personal fortune to foot the bill in order to spare the couple the embarrassment of eviction. It had been reported that the pair might be asked to leave the royal palace as they were unable to meet demands that a market rent be paid to the Treasury.
Thanks to the Queen's intervention the couple will be able to stay on in Apartment 10, despite allegations that they have enjoyed a "£3-million gift" from the taxpayer.
Veteran Labour MP Alan Williams insisted that even £125,000 was not enough to pay for the seven-bedroom home, arguing that a four-bedroom house nearby had been let for £95,000 per year.
Despite his objections, the Queen intends to keep her promise to Prince Michael that he can stay in the residence for life. The news comes as plans are announced for a number of royal properties, including Princess Diana's former home.
The late Princess of Wales' apartment, which is adjacent to Prince and Princess Michael's, has been notoriously difficult to let due to people's sensitivities about the high-profile address. It is thought it may be used as an office for a charity.