DESPITE giving up their day jobs, it is thought the Earl and Countess of Wessex have just about managed to keep hold of their Bagshot home.

Prince Edward and Sophie Wessex hit the headlines again when it emerged they had resigned from their respective jobs.

The Queen has agreed to give the couple a £1million "redundancy package" in return for taking on more royal engagements.

This includes £200,000 for the upkeep of the 57-room Bagshot Park, along with £250,000 for extra domestic costs at the house.

A number of national newspapers had claimed that the Earl and Countess would have to vacate Bagshot Park, but this has been denied.

Bagshot Park was leased by the Ministry of Defence, which had to spend £1.8million to repair the sprawling estate when Prince Edward moved in.

Some £450,000 will be given to the couple as compensation for loss of business income.

Prince Edward will also keep the £141,000 annual allowance which is given to him by the Queen after he was axed from the Civil List.

A trust fund set up after his birth also gives the prince between £150,000 and £200,000 a year.

Prince Edward made the announcement at the weekend that he and Sophie were stepping down from their roles as TV producer and PR worker.

He pledged to support the Queen in her Golden Jubilee year and it is thought both will increase their charity work.

Speculation was rife that Sophie would take up some of Princess Margaret's duties and both will be making more public appearances.

It is thought the decision to quit their commercial roles was taken in December but was not announced until the Queen agreed to compensate them for leaving their jobs.

Prince Edward's controversial TV company Ardent is based at Bagshot Park.

He will step down at the end of March as director of production and joint managing director.

He was in trouble with his brother Prince Charles when Ardent filmed Prince William at St Andrew's University after an official media session had ended.

The Prince of Wales is believed to think that being a royal and running such a business are incompatible.

Newspapers also alleged Prince Edward exploited his royal status for Ardent.

He was criticised for sending a letter in which he said his presence would help promote a film. He denied any wrongdoing.

Sophie will quit her PR role after the "Fake Sheikh" scandal in which a reporter secretly taped her offering to use her royal connections.