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Facts & DataFacts & Data

Where your income tax actually goes, in one breakdown

Public debate about tax and spending often skips a step: what the money is actually spent on. Here's the honest breakdown, sourced to official figures.

S
By Sam Streamlined
··4 min read
~£1 in every £5

of total government spending goes on health

Source: HM Treasury, Public Expenditure Statistical Analyses

This is a demonstration Facts & Data article, illustrating how the finished site presents sourced statistics. Figures are representative examples for design purposes and should be verified against the current fiscal year's published Treasury data before publication.

Government spending isn't funded by income tax alone — National Insurance, VAT, corporation tax and borrowing all contribute to the same pot — but income tax is the single largest revenue source, which is why it's a useful lens for this breakdown.

The two biggest lines, by far

Health and welfare (including the State Pension) together account for roughly half of all government spending. This is worth sitting with, because it means most serious conversations about tax cuts or spending increases are, whether stated or not, conversations about these two budgets specifically.

~46%

of total spending on health and welfare combined

Source: HM Treasury

The line that isn't a choice

Debt interest is money the government has already committed to paying on past borrowing — it buys no services and reflects previous decisions, not current priorities. When interest rates rise, this line grows automatically, squeezing the discretionary budget without any new spending having been agreed.

Every political argument about 'wasteful spending' has to eventually reckon with the fact that most of the budget is health, welfare and debt interest — categories that are either popular, legally committed, or both.

Key figures at a glance

Health
~20%
Source: HM Treasury
Welfare & pensions
~26%
Source: HM Treasury
Education
~11%
Source: HM Treasury
Debt interest
~8%
Source: HM Treasury
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Published 18 May 2026