Prince Michael insists he will not quit 'squatting' Kensington Palace flat

Prince Michael of Kent insisted yesterday that he and his wife would not move out of their Kensington Palace apartment, despite criticism from MPs about their "peppercorn" rent .

He insisted the couple were not "quitters" but refused to say whether he would pay a commercial rate for the palace flat after criticism from MPs at the £70 a week he pays for the flat. He also rejected critics who said he and Princess Michael of Kent should not benefit from the grace-and-favour accommodation because he does not carry out official duties.

But he came under fire from one Labour MP who accused him of "squatting" at the palace and called for him to move out. The Prince said: "We pull our weight for the family and the country. And we do it because we feel we are privileged, and privilege doesn't work without obligation ... The public view of us is trivia and uninformed. I feel it's gone on long enough. People assume our lifestyle is paid for by someone else but it's paid for by us."

He was speaking after members of the Commons Public Accounts Committee criticised the couple and other minor royals for enjoying luxurious low-cost accommodation in a palace that costs the public £1m a year to maintain. The MPs spoke out after the committee toured the palace apartments as part of an inquiry into getting better value for money from the buildings used by royals.

Prince Michael said the decision on whether he and his wife would move out of their flat was for the Queen. He said: "The apartment is in the gift of the Queen, so it isn't for me to speculate. We have not discussed it."

Ian Davidson, Labour MP for Glasgow Pollok and a member of the committee, said: "Prince Michael says he is not a quitter – but he certainly seems to be a squatter getting this valuable property for a peppercorn rent."

"It would appear the Prince and Princess are prepared to fight for their right to receive a £200,000 a week housing benefit without means testing. That would seem to be somewhat of an embarrassment to the Royal Family. There are a lot of people in my constituency who do an enormous amount of charitable work in the community but do not expect the state to give them cheap or free housing."