Apparently so (but it was half a mill!) - it was in an interview in Classic Rock:

Did you not think it would be career suicide to play guitar with Right Said Fred?
Gray: You can say that, but one particular song I wrote for them made me half a million quid. It bought my house. When you’ve been a rock musician for 20 years and never made a penny, it gives you a pension and allows you to look after your family.

With a run of six Top 40 singles, Skin enjoyed a decent run of success.
Gray: Yes, but through that the entire time each of us only made £150 per week – even with a Top Ten album. When I got into session work you earn three or four hundred quid an hour. After a while we wondered why we were doing it. I got involved in pop music, and then almost killed myself through drink and drugs…