What this guide covers
Out of every £100 the UK government spends, roughly £20 goes to the NHS, £14 to State Pensions, £11 to working-age benefits, £9 to schools and education, £7 to defence and security, and the rest spread across roads, courts, foreign aid, debt interest and everything else. About 75% of all government spending comes from tax you and your family pay.
The 7 biggest things tax pays for
The UK government spent about £1.3 trillion in 2024/25. Here's how it broke down, roughly:
| Category | ~% | Out of every £100 spent... |
|---|---|---|
| NHS (hospitals, GPs, dentists) | ~20% | £20 |
| State Pensions | ~14% | £14 |
| Working-age benefits (Universal Credit, disability) | ~11% | £11 |
| Schools, colleges, universities | ~9% | £9 |
| Defence (army, navy, RAF) | ~7% | £7 |
| Interest on government debt | ~6% | £6 |
| Transport (roads, rail subsidies) | ~3% | £3 |
| Police, prisons, courts | ~4% | £4 |
| Foreign aid + everything else | ~26% | £26 |
Numbers are rounded and change each year. The NHS, pensions and welfare together are about half of all spending. That's been roughly true for 20+ years.
How does the government get £1.3 trillion?
About 75% comes from tax. The rest comes from things like dividends from government-owned companies (Royal Mail used to be one), fees, and most importantly, borrowing — the government borrows money on financial markets when it spends more than it taxes (which is most years).
Income Tax + NI + VAT alone make up over half of all tax. The other half is a mix of corporation tax, business rates, fuel duty, alcohol and tobacco duties, capital gains tax, inheritance tax, stamp duty (on house purchases), and many smaller taxes.
Things you use that tax pays for
If you're 10-13, you almost certainly used something tax paid for today. Probably several things.
- School: teachers, building, books, lunch (if free school meals), buses to school in some areas
- NHS: the GP appointments and dentist visits you've had since birth
- Roads and pavements: walking, biking, or being driven to anywhere
- Library: free books, free wifi, free study space
- Buses (in many areas, subsidised by council tax even for paying passengers)
- Parks and playgrounds
- Bin collection
- Police: emergency services if you ever needed them
- Fire and rescue
- Street lights
If you've ever been ill enough to need a hospital visit, that one visit might have cost £500-£5,000. You didn't pay anything because of tax-funded NHS.
Why grown-ups grumble about tax
UK grown-ups commonly complain about tax for a few reasons. Useful to understand both sides:
- It's a lot. Most working adults pay 20-32% of their gross pay in Income Tax + NI before they see any money. Plus VAT (20%) on most things they buy. The total proportion of total income going to tax is often 35-45% for full-time workers.
- It's automatic. Most people never see the cash — PAYE takes it before pay lands. You can't choose not to pay.
- Spending decisions feel distant. Most adults can name what they'd like spending to go to. Most are frustrated that the government chooses differently.
- Tax goes up when growth is slow. Income Tax thresholds (£12,570) have been frozen since 2021. That means inflation pulls more workers into tax even if their wages don't really go up.
Why people still mostly accept tax:
- Most people don't want to live in a country without an NHS, schools, police or pensions
- The alternative — pay-as-you-go private services — is dramatically more expensive (US healthcare is the famous example)
- Tax-funded services are usually available regardless of income, which protects everyone who has a bad year
You won't pay tax for a few years yet
Income Tax only kicks in when you earn over £12,570 a year (the Personal Allowance). A typical 10-13 year-old earns nowhere near that — even with a Saturday job at the older end of this age range, you'd need to work many hours every week to cross that threshold.
You'll get a National Insurance number around your 16th birthday. The first time you see tax come off your pay will probably be when you start a Saturday job at 15-16, but even then, only if you're earning weekly above £242 (the NI threshold) or annually above £12,570 (the Income Tax threshold).
If you're curious, read the 14-16 first part-time job guide or look at one of your parents' payslips with them.
National Curriculum links
- England — PSHE Association KS3 L24 (managing money)
- England — Citizenship KS3 (operation of public services, taxation, government finance)
- England — Maths KS3 (percentages, statistics, pie charts)
- Wales — Curriculum for Wales Progression Step 3-4 (Humanities AoLE, HWB AoLE)
- Scotland — Curriculum for Excellence MNU 3-09a, SOC 3-15a (economy and society)
- NI — LLW KS3 Personal Finance, Local & Global Citizenship
Full mapping in the curriculum map.
UK Tax Drag (2026). What tax actually pays for — the things you use every day. Ages 10–13 guide. Available at: https://kids.uktaxdrag.co.uk/ages-10-13-what-tax-pays-for.html
Curriculum mapping: see UK Financial Education Curriculum Map (Version 1.0).