"Philip and I have been delighted to welcome our eighth great grandchild into our family," the Queen said. "Of course, at the heart of the Christmas story lies the birth of a child: a seemingly small and insignificant step overlooked by many in Bethlehem."

Seated behind a desk in a royal blue cashmere dress designed by Angela Kelly, the Queen added that over time Jesus showed "how small steps taken in faith and in hope can overcome long-held differences and deep-seated divisions to bring harmony and understanding."

Continuing with the annual address, the monarch also admitted that 2019 had been a demanding year, saying that the path was not always smooth and "at times this year have felt quite bumpy, but small steps can make a world of difference."

Last month also saw Prince Andrew -- the Queen's second son -- step back from public duties following a widely-criticized interview about his relationship with convicted sex offender Jeffrey Epstein.

The Queen returned to the theme of reconciliation at the end of the speech, saying: "It's a timely reminder of what positive things can be achieved when people set aside past differences and come together in the spirit of friendship and reconciliation."

A photograph of her husband Prince Philip from her private collection featured behind her, as did one of her with Apollo 11 astronauts Michael Collins, Neil Armstrong and Edwin "Buzz" Aldrin at Buckingham Palace in 1970. This year marked the 50th anniversary of the famous moon mission.