Harry and Meghan’s decision to step back has been on the cards for some time

There’s a reason the British royal family is called “the firm” and that Queen Elizabeth II is often referred to as “the boss” behind palace walls: Everyone on the payroll works for her as head of state. That includes senior royals who carry out engagements and official functions on her behalf.

If you undermine “the boss,” you undermine the institution and that’s exactly what Prince Harry did when he announced that he and his wife, the Duchess of Sussex, were scaling back their official duties to pursue their private interests.

LONDON, ENGLAND - JANUARY 07: Prince Harry, Duke of Sussex and Meghan, Duchess of Sussex depart Canada House on January 07, 2020 in London, England. (Photo by Chris Jackson/Getty Images)

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It wasn’t so much the decision itself but the timing that left senior members of the family feeling hurt. The 93-year-old sovereign had expressly asked Harry to hold off releasing any statements regarding the couple’s future, CNN understands. The mood in the palace on Wednesday night was one of deep disappointment.

Prince William has expressed his “sadness” over the rift with his brother Harry and that the royal family was no longer “a team,” the UK’s Sunday Times reported, citing a friend.

“I’ve put my arm around my brother all our lives and I can’t do that any more; we’re separate entities,” the Duke of Cambridge told a friend, according to the paper.

Clearly conversations over the Sussexes’ future were already underway internally and the monarch wanted to give royal households time to reach some sort of resolution.

Instead, her grandson blindsided the family by taking the somewhat nuclear option of going public which ultimately, CNN has been told, left the Queen “upset.” That’s a red line at every level of British society and has, unsurprisingly, gone down like a lead balloon in the British tabloid media.

Queen Elizabeth II talks with the Duke and Duchess of Sussex during an RAF flypast of Buckingham Palace in 2018.

After a crisis meeting at the Queen’s Sandringham Estate on Monday, the monarch agreed to a “period of transition” for the Sussexes while details of the couple’s role in the royal family are worked out.

The summit – the first time the senior royals met since the couple made their announcement – was attended by the Queen, Prince Charles, Prince William and Prince Harry. Meghan, who has returned to Canada, was expected to call in.

In a statement after the meeting, the Queen said the family would have preferred the couple to “remain full-time working members of the royal family,” but that they “respect and understand” Prince Harry and Meghan’s “wish to live a more independent life.”

The statement added that there was more work to be done but that the Queen had asked for “final decisions to be reached in the coming days.”

In spite of how it all unfolded, the decision to step back from senior royal duties is not that surprising. While it may have seemed like something of a bombshell to casual observers, the writing had been on the wall for sometime.

Harry and Meghan had just returned from a six-week break from royal duties over Christmas and both have previously spoken of the toll public scrutiny had taken on them. Harry had also remarked during the couple’s controversial TV documentary that aired in October, about the possibility of living abroad in South Africa.

Additionally, a source close to the Duke and Duchess of Sussex told CNN after the broadcast that the institution around the royal family undervalues the couple. Taken together, it’s clear the couple have been unhappy with their roles for some time.

The Duke and Duchess have pulled themselves out of the Royal Rota.

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The royal family’s advisers have, in recent years, been promoting a slimmed-down monarchy, which has seen senior family members like Prince Charles and the Duchess of Cornwall as well as Prince William and the Duchess of Cambridge take on more duties in support of the Queen. In time, that core group will also feature increased appearances by William and Kate’s children, Princes George and Louis and Princess Charlotte.

Harry – and Meghan upon marrying into the family – had been among those senior royals diligently conducting engagements on behalf of the monarch. But as the family expanded and the duke slipped down the line of succession, there had been much speculation over how the Sussexes would define themselves in the royal family of the future.

Harry and Meghan during Trooping The Colour on the Mall on June 9, 2018 in London, England.

What we shouldn’t do is confuse the current family crisis with an institutional one because the monarch and her direct heirs have come together in a sign of strength to work towards a response. That is the line of succession which the monarchy is built and, if anything, their actions have proved the resilience of this ancient institution.

Initially, the Queen, Charles and William instructed their teams to find a “workable solution” with the Sussexes within days, a royal source told CNN. The implication here that the couple’s plan, as published for the world to see on a new website, isn’t practical.

Britain's Prince Harry looks at his wife Meghan, the Duchess of Sussex as they attend a meet-the-people session at Kingfisher Bay Resort on Fraser Island on October 22, 2018. - Prince Harry greeted an Aboriginal community on the stunning World Heritage-listed Fraser Island on October 22 as his pregnant wife Meghan took a break from official duties during the royal couple's Australian tour. (Photo by DARREN ENGLAND / POOL / AFP) (Photo credit should read DARREN ENGLAND/AFP/Getty Images)

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CNN was told privately that ultimately, the website needed to be edited significantly or taken down altogether because of the many inaccuracies and false assumptions presented on it.

On Saturday night as news of the extraordinary Sandringham summit emerged, a palace source also told CNN there had been a series of meetings and consultations across the last few days. The source said there were a range of possibilities for the family to review, taking into account what the Sussexes had outlined on their website earlier in the week.

Any change in the working life and role of a royal requires complex and thoughtful discussion. It still remains the wish of the Queen that this happens at pace, the source added. But there is also a genuine agreement and understanding that any decision will take time to be implemented.

One aspect of Harry and Meghan’s new role that they have put forward is working towards financial independence, meaning they won’t accept funding from the Sovereign Grant, an income from the UK government given to the Queen to carry out public duties.

Britain's Prince Harry and his wife Meghan, Duchess of Sussex, attend the Endeavour Fund Awards in London in March 2020.

Harry and Meghan embrace at a polo match in May 2017. They were introduced by mutual friends in 2016.

Meghan and Harry made their first public appearance as a couple at the Invictus Games in Toronto in September 2017.

Meghan flashed her engagement ring to reporters during a November 2017 photo call. The ring, designed by Harry, featured a large diamond from Botswana and two smaller outer diamonds from the personal collection of Harry's late mother.

This engagement photo was released by Kensington Palace.

The couple meets well-wishers during an appearance in London in January 2018.

Harry and Meghan join Prince William and Catherine, Duchess of Cambridge, during a Royal Foundation Forum in February 2018.

The couple watches Coach Core apprentices take part in a training exercise in Birmingham, England, in March 2018. The Coach Core apprenticeship scheme was designed by the Royal Foundation to train young people to become sports coaches and mentors within their communities.

Markle walks down the aisle of St. George's Chapel during her wedding to Prince Harry in May 2018. She was unescorted in what was an unprecedented step for a royal bride in the United Kingdom. Her father was unable to attend the wedding because of health concerns.

Just after getting married, the newlyweds wave during their carriage procession in Windsor, England. Zoom in for a closer look.

The couple poses with family members after getting married in May 2018.

Meghan and Harry attend the Royal Ascot horse races in June 2018.

Members of the royal family watch a flyover during a July 2018 event marking the centenary of the Royal Air Force. From left are Prince Charles; Prince Andrew; Camilla, Duchess of Cornwall; Queen Elizabeth II; Meghan; Harry; Prince William; and Catherine, Duchess of Cambridge.

Meghan and Harry pose with the cast and crew of the musical "Hamilton" after a performance in London in August 2018. Harry gave those in the theater something to remember after breaking into mock-song at the end of the show. The show was held to raise money for his HIV charity, Sentebale.

The couple talks to members of OneWave, an awareness group for mental health and well-being, in Sydney in October 2018.

Meghan and Harry cheer on sailors during the Invictus Games in Australia in October 2018.

Meghan and Harry attend a Christmas Day church service in December 2018. With them, from left, are Prince Charles; Prince William; and William's wife Catherine, the Duchess of Cambridge. Harry and William are the two sons of Prince Charles and the late Princess Diana.

Meghan and Harry walk past tapestries during a visit to Rabat, Morocco, in February 2019.

Queen Elizabeth II looks at her new great-grandchild, Archie, in May 2019. Prince Philip is on the far left. Meghan's mother, Doria Ragland, is next to her at right.

New York Yankees manager Aaron Boone presents the couple with a jersey for Archie before a Major League Baseball game in London in June 2019.

Harry and Meghan greet singer Beyoncé and her husband, rapper Jay-Z, as they attend the European premiere of the film "The Lion King" in July 2019.

Meghan holds Archie during their royal tour of South Africa in September 2019.

Harry and Meghan dance during the South African tour.

Harry and Meghan shared this image in February 2021 to accompany the announcement that they were expecting their second child. Lilibet "Lili" Diana Mountbatten-Windsor was born on June 4, 2021.

Meghan celebrates her son's first birthday with a reading of the children's book "Duck! Rabbit!" in May 2020. In a video posted online -- and filmed by her husband -- Meghan read to Archie from the popular book and encouraged fans to donate to a number of causes aimed at helping young people.

The couple attends the annual Festival of Remembrance in November 2019.

Meghan and Harry visit a community center in Windsor, England, in November 2019.

Meghan and Harry visit the Canada House in London in January 2020. The couple announced the next day that they would be stepping back from their roles as senior members of the British royal family.

Harry and Meghan attend the annual Commonwealth Day service at London's Westminster Abbey in March 2020. This marked the couple's final engagement as senior members of the royal family.

Harry and Meghan give an interview to Oprah Winfrey that aired in the United States in March 2021. It was their first sit-down appearance since leaving Britain. Meghan described herself as the victim of an image-obsessed Buckingham Palace, which weighed in on everything from how dark her son Archie's skin color would be to how often she went to lunch with friends.

Harry and Meghan depart St Paul's Cathedral in London after attending a service honoring Queen Elizabeth II in June 2022. They flew in from the United States to attend the Queen's jubilee celebrations, and they were warmly welcomed by a crowd outside the service.

Harry and Meghan are joined by Prince William and Catherine, Princess of Wales, as they greet crowds outside Windsor Castle and view floral tributes to the late Queen Elizabeth II in September 2022. The appearance was a surprise, not announced in advance. Screams erupted from royal fans as the four emerged, with many hoping the Queen's death would pave the way for a reconciliation between the brothers, whose tension is well-known.

Harry and Meghan are behind King Charles III and Camilla, the Queen Consort, during the funeral procession of Queen Elizabeth II.

Meghan and Harry laugh while on stage at the Robert F. Kennedy Human Rights Ripple of Hope Gala, which was held in New York in December 2022.

Netflix released a documentary series, "Harry & Meghan," in December 2022. In the series, the couple defended their decision to step back from their roles as senior members of the royal family.

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“During the course of 2020, The Duke and Duchess of Sussex have made the choice to step back as senior members of the Royal Family and no longer receive funding through the Sovereign Grant, thereby making them members of the Royal Family with financial independence,” according to their new SussexRoyal website.

However, as their website also notes, only 5% of their income comes from the Sovereign Grant. The rest – which they want to keep – is allocated at the discretion of Harry’s father, Charles through his estate known as the Duchy of Cornwall.

LONDON, ENGLAND - JANUARY 07: Prince Harry, Duke of Sussex and Meghan, Duchess of Sussex arrive at Canada House on January 07, 2020 in London, England. (Photo by Samir Hussein/WireImage)

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The couple’s website also notes that under their new plan they hope to retain their home, Frogmore Cottage, in Windsor, as a base in the UK – but they’ll need permission from the Queen as it belongs to her.

Then there’s the towering security costs covered by the British taxpayer. These are some of the complex matters that the royal staff will try to thrash out in the coming days.

The Queen and Harry arrive at the Queen's Garden Party in Buckingham Palace on May 29, 2019.

Their income, properties, security and even titles could become part of the negotiation process palace officials use to get to that “workable solution” that the Sussexes might also be happy with. But Harry and Meghan aren’t known for compromising so what if they refuse to retract their announcement and update the website?

There would be an impasse and the Queen could be left with a fait accompli: Go with Harry’s plan and against her heirs or ask him to step back from public duties altogether in favor of her successors. Whenever she’s been tested like this, she’s always put duty first. That’s why she’s so revered.