The origin of the Sovereign as the 'fountain of honour' is an ancient one. Throughout history, monarchs realised the value and necessity of rewarding gallantry in battle and loyal service, often by awarding gifts of land or money, or some sort of title or sign of merit as a mark of distinction. This was particularly the case when the first sovereign of a new dynasty succeeded to or took the throne and therefore needed to ensure that their supporters' loyalty was rewarded. After the Norman Conquest in 1066, William I granted land to his allies in exchange for continuing loyalty and military service; for example, he created feudal earldoms to protect the English border against Welsh raids. Occasionally, land or titles were granted by a king (for example Charles II) in recognition of his illegitimate children, who could not succeed to the throne.
After medieval times, gifts of land, money or weapons which were given as rewards for political or personal service, or help in battle, were replaced by the awarding of knighthood, insignia of Orders of chivalry and other honours. From the reign of Richard II onward, gifts of gold or silver chains to be worn round the neck as a reward for loyal service were frequently given. Chains of honour were given to certain officers of the crown as a special mark of distinction; known as 'collars of the King's Livery', such chains were worn as pledges of loyalty. Until the beginning of the nineteenth century, appointment to the Orders of chivalry in England was restricted to members of the aristocracy and high-ranking military figures. From that period onward, the appointments were drawn from wider backgrounds.
In the eighteenth and nineteenth centuries, as Parliament's legislative role grew and government by a Cabinet of ministers headed by the Prime Minister evolved, the method of selecting people for honours also changed. As with the Sovereign's other public functions, the king or queen conferred honours on the advice of their ministers, normally the Prime Minister, rather than on their own royal initiative.
Today, as the 'fountain of honour' in the United Kingdom, the Sovereign has the sole right of conferring all titles of honour, including life peerages, knighthoods and gallantry awards. Anybody can make a recommendation for a British national to receive an honour; awards are made in recognition of distinguished service in any form by people from every section of the community. As The Queen confers honours on the advice of the Prime Minister, so recommendations for honours must be sent to the Prime Minister's Office.
Honours for meritorious service are usually conferred and announced twice a year - on the Sovereign's official birthday (early June) and at the New Year, or occasionally on a change of government. Awards for gallantry are published periodically on a separate list. Recipients receive their awards at an Investiture.
Honorary decorations and awards are occasionally granted to people from other countries who have made a significant contribution to relations between the United Kingdom and their own country. These awards are granted on the advice of the Foreign and Commonwealth Office.
However, there are still certain honours in the United Kingdom that the Sovereign confers at his or her own discretion. The only honours for which the Sovereign personally selects recipients are: the Order of the Garter, the Order of the Thistle, the Order of Merit, the Royal Victorian Order and the Royal Victorian Chain, Royal Medals of Honour and Medals for Long Service.
Historically, the exchange of Orders between the Sovereign and overseas heads of state tended to be personal and dynastic - particularly during Queen Victoria's reign, when many dynastic marriages contracted by her large family created a network which closely united the dynasties of Europe in the nineteenth century. Since the mid-twentieth century, the exchange of Orders has become less personal and more formal and diplomatic. The award, return or removal of Orders can still be highly symbolic - as shown by The Queen's conferring the Order of Merit on President Mandela, or her return of the Romanian Order received from President Ceausescu and her instruction to erase the President's name from the Register of the Order of the Bath. Today, Orders bestowed on The Queen, and reciprocal awards to foreign heads of state, can be seen as formal and official awards by which one nation honours another in the person of the head of state.
LI 3.9.25