Andrew Mountbatten Windsor is reportedly set to receive a substantial six-figure payment alongside an ongoing annual stipend, as part of a "relocation settlement" following his departure from Royal Lodge.
The one-off sum is intended to cover his move from Windsor to private accommodation in Sandringham, Norfolk.
This will be followed by regular payments designed to prevent him from “overspending in his new life as a commoner”, according to claims made by The Guardian newspaper.
The annual payment, which is said to be privately funded by King Charles, is reported to be worth several times the value of his £20,000-a-year navy pension
The report of the payout comes as claims suggest that the decision to strip Andrew of his honours and titles was influenced by the Queen’s concerns about his impact on her work with sex abuse victims.
According to The Daily Telegraph, Camilla was appalled by Andrew’s association with paedophile financier Jeffrey Epstein and felt the ongoing row was getting in the way of her public duties.
The Queen has supported survivors of sex attacks and domestic abuse for years and it was recently revealed in a new book that she herself fought off a man who groped her on a train when she was a teenager.
And The Times reported Andrew agreed to leave Windsor after his ex-wife Sarah Ferguson made it clear that she would be leaving the property.

She will not be moving to Sandringham and will have to find her own property to live in.
The King stripped his younger brother of his Prince and Duke of York titles in a dramatic move on Thursday night and a statement from Buckingham Palace stressed both his and Camilla’s thoughts were with victims of abuse.
The statement said: “Their Majesties wish to make clear that their thoughts and utmost sympathies have been, and will remain with, the victims and survivors of any and all forms of abuse.”
It is understood the driving force behind the removal was “serious lapses of judgment” by Andrew and the final decision was made by the King, with support from his wider family including the Prince of Wales.
Earlier in October, it was announced Andrew had agreed to stop using his titles but would remain a prince and retain his dukedom ahead of the publication of the memoirs of the late Virginia Giuffre, who had accused the former duke of sexually assaulting her when she was a teenager.
Andrew strenuously denies the allegations.
The Daily Telegraph reported the Queen was “deeply uncomfortable” about leading anti-abuse campaigns, including domestic abuse charity SafeLives, of which she is patron, while Andrew remained a public figure.
The attack on Camilla in the 1960s was revealed in the book, Power And The Palace: The Inside Story Of The Monarchy And 10 Downing Street by Valentine Low, a former royal reporter for The Times newspaper.
The King’s actions have effectively ended Andrew’s public life, and he has also given up his 30-room Royal Lodge home in Windsor and will move to the private Sandringham estate, although he may not leave until the new year.

Sandringham in Norfolk is the venue for the traditional Christmas gathering for members of the royal family and the delay will mean any potential encounter with Andrew over the festive period is avoided.
A new YouGov poll has found that while 79 per cent of people questioned backed the King’s decision to strip Andrew of his titles, 58 per cent of the 4,739 adults quizzed on Friday felt the royal family had moved too slowly in dealing with the controversy.
There has also been a series of damaging newspaper allegations including that Andrew tried to get the Metropolitan Police to dig up dirt for a smear campaign against Giuffre.
The force said previously it is looking into the allegations after the Mail on Sunday newspaper claimed Andrew passed Ms Giuffre’s date of birth and social security number to his taxpayer-funded bodyguard in 2011 and asked him to investigate.
The Public Accounts Committee has already confirmed it is writing to the Crown Estate, effectively Andrew’s landlord, and the Treasury asking for further information about the prince’s lease which caused a public outcry when it emerged he was paying a “peppercorn” rent.
Charles’ actions are already bearing fruit as Andrew’s name has been struck from the official roll of the peerage which means his Duke of York title will no longer be used officially.
In the next few days, the King is expected to send to the Lord Chancellor David Lammy the royal warrant, affecting the dukedom, and letters patent which will formally remove Andrew’s entitlement to use the title prince and HRH style.
Andrew stepped down from public duties in 2019, after his disastrous Newsnight interview about his friendship with Epstein, and as a non-working royal does not serve as a counsellor of state, who can deputise for the monarch if he is overseas on an official trip or ill.
He remains eighth in line to the throne but in the highly unlikely scenario Andrew is on the verge of becoming monarch it is likely public pressure would intervene.
But there have been calls to bring in legislation to stop any chance, however remote, of him becoming King.
York Central MP Rachael Maskell said time should be found in parliament to remove Andrew from the line to the throne and said: “I don’t think these things will take a lot of time. It’s a couple of small clauses in a piece of legislation.”
Downing Street said there were no plans for legislative changes, when asked about potentially making it easier to strip peerages in the future or remove Andrew from the line of succession.
The former duke had a “cast-iron” lease for his Royal Lodge home and only after negotiations with the King’s representatives did he agree to serve formal notice on Thursday to surrender the lease, which had more than 50 years left to run.
It has been reported that Andrew will not be moving to Wood Farm on the Sandringham estate, the property favoured by the late Queen and her husband, the late Duke of Edinburgh, who preferred its cosy surroundings to the main Sandringham House.
But there are a number of other properties available, ranging from Park House, the birthplace and childhood home of Diana, Princess of Wales; to York Cottage, where King George V lived before becoming monarch.
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