The winner will receive $675,000 (£540,000), up from the $490,000 (£392,000) won by Georgia Hall in 2018.
In the men’s Open Championship, which takes place at Royal Portrush later this month, the purse is $10.75m (£8.56m) and the winner will claim $1.89m (£1.51m).
“This is an important first step,” said R&A chief executive Martin Slumbers.
“We know it will take time to move closer to achieving parity with the men’s game.
“We will continue to work towards the long-term goal of a sustainable business model but we can’t do it alone and the support of fans, sponsors and media are all key to achieving that success.”
Taking place on the Marquess’ Course in Woburn, Bedfordshire. from 1-4 August, the Women’s British Open now offers the second-highest prize fund of the five major women’s golf championships.
The move comes as football’s governing body Fifa faces criticism for the disparity in prize money between the men’s and women’s World Cup tournaments.
Prize money for the 2019 Women’s World Cup was $30m (£24m) compared with the $400m (£320m) shared among the teams at the men’s tournament in Russia in 2018.
Source: BBC News