Buckingham Palace is to undergo a 10-year refurbishment costing the taxpayer £369m, the Treasury has announced.
The Queen will remain in residence during the work, to begin next April.
Ageing cables, lead pipes, wiring and boilers will be replaced, many for the first time in 60 years, owing to fears about potential fire and water damage.
Tony Johnstone-Burt, Master of the Queen's Household, said phased works offered the "best value for money" while keeping the palace running.
The works will be funded by a temporary increase in the Sovereign Grant, as recommended by the Royal Trustees, who include the prime minister and chancellor.
This funding change will require MPs' approval.
However, Republic, which campaigns for the abolition of the monarchy, called for an "independent inquiry and full disclosure" into the use of taxpayers' money.
The group said on Twitter: "Royal attitude always the same: it's theirs to use and ours to pay for. Time we took the palace back and turned it into a world class museum."
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