One of the monarch’s jobs is to appoint the Prime Minister. In practice, of course, the senior member of the government has to work with Parliament, and so the Prime Minister is the leader of the party that holds the majority in Parliament. The real power is with Parliament. The monarch and Prime Minister meet once a week (or speak on the telephone, if they’re not within easy travelling distance of one another). During these meetings, as in other dealings with Parliament, the sovereign’s duty is to ‘encourage or warn’, but, ultimately, to respect the advice of the minister of the day.
The current queen, Elizabeth II, has reigned during the governments of ten Prime Ministers. The discussions she’s had with these varied political figures (seven Conservative and three Labour leaders), together with her wide experience of talking to political leaders around the world, makes her one of the best-informed people in the country. Prime Ministers value her opinions, which are given in the strictest confidence.
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