Meghan, the Duchess of Sussex and Prince Harry originally repaid the money in monthly installments. But a Sussex spokesperson confirmed that the money will go in full to the sovereign grant.
It would have taken the Duke and Duchess 11 years to repay the taxpayer money if they had continued to pay the monthly installments.
But a spokesperson for the Sussexes said they would refund the money in full.
He also said the Sussexes will continue to use Frogmore Cottage as a British base.
He said: “A contribution has been made to the Sovereign Grant by the Duke of Sussex.
“This contribution originally proposed by Prince Harry fully covered the necessary renovation costs of Frogmore Cottage, a property of Her Majesty The Queen, and will remain the British residence of the Duke and his family.
The spokesperson said they would pay an undisclosed “commercial” rent for the Windsor property.
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Since the couple stepped down from the royal family, the £ 2.4million of taxpayers’ money has been a controversial topic.
The debate intensified after the Sussexes reportedly bought a mansion worth £ 11million in Montecito, Santa Barbara.
The couple are said to have purchased the nine bedroom, 16 bathroom property with a £ 7.5million mortgage.
The couple also recently signed a multi-year deal with Netflix to produce television series, documentaries and children’s shows.
The deal with the online streaming giant would cost around $ 100 million.
The source said the news of the Sussexes’ payback came as a surprise.
They said: “It was a surprise, and one can only assume that it has something to do with the Netflix deal.
“Maybe it now means that he can afford to repay the full money immediately or maybe he’s been angered by the criticism the deal has led to his finances. . No one really knows.
“But if he thinks it will shield him from public and media attention, he’s wrong.
“This new, highly visible media role that he is looking for in the United States makes him more of a public figure than ever.