← Your World

Money and public finances

Where does every £1 of tax actually go?

Health and pensions take roughly half before anything else is paid for.

Interactive12 minCitizenshipMaths
Where does every £1 of tax actually go? — illustration

Where the money comes in

Income tax, National Insurance and VAT raise most UK government revenue. Each is collected differently, and each falls on people in different ways.

Where it goes out

Health, state pensions and other welfare, and education take the largest shares. Debt interest is a real and growing slice that buys no services at all.

Why the arguments happen

The budget is finite, so more for one heading means less for another or more borrowing. Political disagreement is usually about that trade-off, not about the arithmetic.

Check your understanding

1. Which three raise most UK government revenue?
2. Which spending heading buys no services at all?
3. Why are budget arguments political?

Your turn

Split an imaginary £100 of tax across services, then justify your two biggest choices.

Luna: Only if you feel up to it — one more?

Ask the AI tutor

Curriculum objectives covered

  • Understand a range of financial products and services, and how public money is raised and spent
  • Understand income, spending, saving and the choices involved
Good Learning Co. — personalised UK curriculum learning, built around what each learner loves.