King Charles has privately warned Prince Andrew that continued financial and housing support now depends on his public conduct, after newly released Epstein-related material reignited scrutiny of the disgraced royal and strained already fragile family relations, according to people familiar with the matter. The warning followed publication of a photograph showing Andrew smiling at Sandringham alongside women during a gathering connected to Jeffrey Epstein's circle.

The image, released as part of a U.S. Justice Department document dump, depicts Andrew in the Sandringham saloon room during a 2000 gathering connected to Ghislaine Maxwell. The setting - one of the monarchy's most symbolically important private spaces - intensified anger inside the palace, where officials say the king viewed the photograph as deeply damaging amid ongoing efforts to protect the institution's credibility.

According to royal sources, King Charles delivered a blunt message to his younger brother after reviewing the image. One source said the monarch told Andrew to "wipe that smile off your face," making clear that any appearance of levity or defiance could jeopardize continued financial backing and living arrangements. The warning was described as unusually direct for a monarch known for caution in family disputes.

The same source said the king's position was unequivocal: "if Andrew expects his living arrangements and security costs to keep being covered by the firm, he needs to show some contrition." Another insider added that Andrew had been told he "must look downcast, humble and apologetic any time he steps outside of royal residences."

The photograph at the center of the dispute was taken in December 2000 during a birthday gathering for Ghislaine Maxwell, now serving a 20-year prison sentence for sex trafficking offenses in the United States. In the image, Andrew appears smiling while seated among several women, with Maxwell standing behind him. Palace officials said the setting - Sandringham's saloon room - compounded the damage because of its symbolic importance to the royal family.

Andrew stepped back from public duties in November 2019 and later reached a financial settlement in 2022 with Virginia Giuffre, who accused him of sexual abuse. He has denied wrongdoing. Since then, he has lost military titles and royal patronages and has largely retreated from public life, though his continued residence and security arrangements remain sensitive internal issues.

According to people familiar with internal discussions, King Charles views the resurfaced image as undermining efforts to draw a line under the scandal. One palace source said there is "a palpable sense that Charles' patience has finally run out," adding that funding is no longer viewed as unconditional.

Another source close to the situation said the monarch believes Andrew has failed to grasp "how his demeanour feeds public anger," especially when images emerge suggesting ease or confidence rather than remorse. The king, the source said, sees the issue as reputational rather than personal.

The saloon room itself has become symbolic in the dispute. A former royal aide described it as "a room loaded with history and family meaning," noting it is traditionally used during Christmas gatherings and for the monarch's annual broadcast. Seeing Andrew photographed there in a casual pose was described as deeply unsettling to senior royals.

Since the image surfaced, Andrew has been photographed riding near Windsor, prompting renewed commentary about whether he understands the constraints now placed upon him. One source summarized the new arrangement succinctly: "discretion and humility in public from Andrew - including not grinning in public as if he has nothing to worry about - in exchange for continued support."