The financial arrangements surrounding his departure have attracted particular attention because Andrew continues to receive private support from King Charles, 77.
A senior royal source claimed: “The idea that Andrew is walking away from Royal Lodge with a compensation entitlement of more than £300,000 is striking many ordinary people as absolutely outrageous.
“Families across Britain are struggling to pay their mortgages, keep up with household bills and afford necessities, yet a disgraced former prince is still receiving financial benefits connected to a royal mansion.
“People will inevitably ask why somebody who has been stripped of his royal status should receive a payment that most working people could never hope to earn in several years.”
“The fact that the payment is legally justified under his lease doesn’t necessarily make it any easier for the public to stomach,” the insider noted.
Besides his Royal Navy pension, the former Duke of York receives a stipend from the monarch’s personal funds, although the amount has not been publicly disclosed.
Charles is said to have insisted the financial assistance must not be used to fund Andrew’s recent legal proceedings against Thames Valley Police.
It remains unclear whether any royal financial support contributed towards the Royal Lodge repair settlement.
Andrew previously received assistance from family members when settling a civil sexual assault lawsuit brought by Virginia Giuffre, who accused him of abusing her when she was 17.
He denied the allegations and reached an out-of-court settlement, without admitting liability.