HOW GOVERNMENT SPENDS YOUR TAXES (UK)

Government spending 2023–24: Where does it all go?

Total spending: £1.27 trillion (100%)

Welfare: £313.5bn (24.6%)
- Pensioner spending £150.7bn
- Universal Credit £88.3bn
- Disability benefits £41.2bn
- Child benefit £13.4bn
- Other spending £19.9bn
Health: £201.9bn (15.8%)
Debt interest: £104.9bn (8.2%)
Education: £94.3bn (7.4%)
Local councils: £86.7bn (6.8%)
- Adult Social Care £24.5bn
- Police £16.6bn
- Children’s Social Care £14.1bn
- Cultural, environmental and planning £11.3bn
- Highways and transport £10.3bn
- Public Health £3.9bn
- Fire & Rescue £2.9bn
- Housing & Homelessness £2.5bn
- Other services £0.6bn
Devolved governments: £82.6bn (6.5%)
- Scotland £45.3bn
- Wales £20.1bn
- Northern Ireland £17.2bn
Depreciation: £62.5bn (4.9%)
Defence: £56.4bn (4.4%)
Transport: £37.3bn (2.9%)
VAT refunds: £26.4bn (2.1%)
Home Office: £22.7bn (1.8%)
- Public Safety (police) £13.9bn
- Asylum Accommodation £2.5bn
- Corporate & Delivery £1.8bn
- Other functions £4.5bn
Funded public sector pension schemes: £19.0bn (1.5%)
Science, innovation and technology: £13.7bn (1.1%)
Environmental levies: £13.2bn (1.0%)
Public corporations: £13.1bn (1.0%)
Justice: £12.8bn (1.0%)
Housing: £12.3bn (1.0%)
Foreign Office: £11.2bn (0.9%)
Energy security and net zero: £10.6bn (0.8%)
Company and other tax credits: £10.6bn (0.8%)
Work and Pensions: £10.1bn (0.8%)
Other: £59.2bn (4.6%)

Clarifications

Department for Work and Pensions: The departmental budget funds only the machinery behind Britain's benefits system, not the actual payments.
Public Sector Pensions: The government pays billions yearly to top up pensions for public sector workers like teachers and NHS staff.
- This isn't the whole pension cost - it's just the extra funding needed to keep the pension pots healthy.
- Unlike unfunded schemes (like the state pension, paid straight from today's taxes), these pensions have real investments.
- But when those investments don't grow enough to meet future promises, taxpayers have to fill the gap.
- This is £19bn and growing. The figure here is just the tax top up. The actual growing liability is in the trillions.
Local Councils: it is worth noting that within 'Local Councils' the biggest expenditure is Adult Social Care, and Children's Social Care is a huge expenditure, which is in fact further welfare expenditure.
Housing: this is mostly welfare.
Environmental levies: Environmental levies appear in government accounts even though they're primarily funded through additions to energy bills rather than general taxation.
Foreign Office: 67% of this budget is spent on Foreign Aid.