The Queen asked the British Government for a poverty handout to help heat her palaces but was eventually rebuffed because of a feared public relations disaster, documents have revealed.
The Royal Household complained in 2004 that the Queen's energy bill had risen by 50 per cent to more than £1 million ($2.15 million) a year.
The household, which is given £15 million a year to maintain the Queen's palaces, applied for a separate grant under a £60 million Community Energy Funding scheme.
Surprisingly, the Government at first offered no resistance and cleared the way for the Queen's handout.
But then royal aides were told energy-saving grants were aimed at low-income families and giving money to royals under such a scheme would result in "adverse publicity".
The Queen's deputy treasurer asked: "Community Energy can fund up to 40 per cent of the capital costs of implementing a community heating scheme ... We would like to know whether the Household [would] be able to benefit from these grants. I look forward to your comments."
The grant would have helped to replace heating systems at Buckingham Palace and Windsor Castle.
Yet some of the buildings which would have benefited were occupied by minor royals living in "grace and favour" accommodation on the royal estates.
In an email sent to the palace, it was diplomatically explained that the funds were aimed at people on low incomes.
A Government official wrote: "I think this is where the Community Energy Funding is directed and ties in with most allocations going to community heating schemes run by local authorities, housing associations, universities, etc.
"I also feel a bit uneasy about the probable adverse press coverage if the palace were given a grant at the expense of, say, a hospital. Sorry this doesn't sound more positive."
Documents show that the Royal Household's gas bill had risen from £319,000 in 2002 to £526,000 in 2006. Electricity jumped from £249,000 to £513,000 over the same period.
The correspondence was disclosed under a freedom of information law.
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Queen wanted poverty grant to heat palaces
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