Senior members of the British royal family are reportedly increasingly frustrated with Prince Harry and Meghan Markle, especially with the couple participating in quasi-royal style events like their recent trip to Australia. But insiders, now describe a situation where the palace is effectively powerless to stop them as they failed to uphold the Sandringham Agreement.
Journalist Rob Shuter reported on his substack that the palace is now trying a different approach to manage King Charles’ second son and his wife. Where once they tried to manage the situation and do damage control as needed, there is now a reluctant acceptance that the couple will continue to operate on their own terms.
The Sandringham agreement was originally Queen Elizabeth’s brainchild where she allowed Harry and Meghan to step back from their roles as working royals so that they could work to achieving financial independence. They wanted a different kind of lifestyle, so in 2020, the queen agreed to them breaking away as long as they met certain conditions.
What a beautiful life God set for both Prince Harry and Meghan to lend.
They are each other’s safe place. Harry an orphan (yes I said that) and Meghan an only child, they are exactly where they needed to be. pic.twitter.com/sg0jJUsmBw
— Carmella (@Sussex5525) April 18, 2026
In particular, she rejected them using a “Sussex royal” brand, arguing that they couldn’t be half-in and half-out of the monarchy. The queen was clear that because they were no longer working royals, they could not claim its benefits. For the Sussexes, Megxit was brutal.
“This is exactly what the Queen didn’t want,” one insider said. “She created that agreement to eliminate gray areas—not invite them.” Apparently, some members of the royal family see that the Sussexes have broken the agreement. “They feel the line has been crossed.” The source pointed out that the original terms were straightforward. “The deal was simple: step back or stay in. Not both.”
Despite the anger, the palace is reported to have realized that intervention is no longer effective. Instead, they have shifted to a “let them” phase. “There’s been a shift by the family,” the insider explained. “It’s gone from trying to control the situation to accepting it.”
That shift recognizes the reality about Harry’s position within the monarchy. While titles and roles can be adjusted, his identity cannot. “Prince William and King Charles III don’t have a play here,” the source said, referring to Prince William and King Charles III. “They’ve reached the point of: let them do what they’re going to do.”
On the first day of their four-day trip to Australia, Prince Harry and Meghan Markle visited Royal Children’s Hospital in Melbourne. ❤️🇦🇺 pic.twitter.com/mJ3cH4wDt4
— ExtraTV (@extratv) April 14, 2026
Even more drastic steps — such as revisiting titles — will be unlikely to change public perception of who Harry is. “He’s Princess Diana’s son. He’s the King’s son. That doesn’t change—titles or no titles,” the insider added.
It’s not surprising that Princess Diana’s name comes up frequently when Prince Harry is brought up. Their situations are so similar that they are often compared. When she and then-Prince Charles divorced, she too lost certain privileges. She was no longer an active role and had to re-learn her place in society. “Diana lost her HRH, but she was always royal in the public’s eyes,” the source said. “The same applies to Harry.”
For now, the palace is focused not on control, but on managing expectations. They no longer want to enforce the way that they think it should go. “This isn’t about approval anymore,” the source concluded. “It’s about acceptance. And right now, the message is simple: let them.”
