Learning aim
By the end of the 6-week unit, pupils will have built core KS5 money-education competencies through a coherent, scaffolded sequence covering the six topics below.
Unit overview
This is a complete 6-week unit covering core KS5 money education objectives. Each lesson is self-contained with its own resources, differentiation, and assessment — but designed to build cumulatively over the half-term.
National Curriculum links
- PSHE Association KS5: sequence of objectives on financial literacy, money management, and economic citizenship
- Maths KS5: percentage calculations, ratios, financial arithmetic
- Citizenship KS5: economic role of citizens, the welfare state, tax and public services
6-week breakdown
LESSON
Plan 5 student loans
Objective: Calculate Plan 5 repayment; explain the 40-year write-off.
Activity: Calculation activity across three salary scenarios.
Assessment: Calculate annual Plan 5 repayment for £35k salary.
LESSON
First job in your first tax year
Objective: Explain mid-year starter PAYE mechanics; recognise emergency codes.
Activity: Compare cumulative vs W1/M1 codes for mid-year starter.
Assessment: Calculate tax overpayment for £24k starter on W1/M1 code.
LESSON
Choosing your first pension at 18
Objective: Calculate the long-term cost of opting out of auto-enrolment.
Activity: 47-year compound projection for given contribution levels.
Assessment: Compute pension pot value at 65 for £100/month from age 18.
LESSON
Compound investing from 18
Objective: Compare ISA and SIPP wrapper for an 18-year-old investor.
Activity: Build 47-year compound table for £50/£100/£200/£400 monthly contributions.
Assessment: Recommend ISA or SIPP for a stated scenario with justification.
LESSON
Building credit history at 18
Objective: Explain the three CRAs; list actions that build/damage credit.
Activity: Sort actions into builds/damages/neutral.
Assessment: Write a 5-year credit-building plan from age 18.
LESSON
UK housing options at 21
Objective: Compare rent / shared ownership / full purchase; apply 4.5× salary affordability rule.
Activity: Calculate deposit timeline using LISA from age 18.
Assessment: Build LISA deposit plan to age 23.
End-of-unit assessment
Each lesson includes its own assessment criteria — typically a short task or worksheet at the end of class. We recommend a cumulative end-of-unit assessment quiz: see the matching KS5 unit quiz (where available).
Marking guidance and exemplar answers are provided on each individual lesson page.
Preparation
- Print all 6 lesson plans for the unit before week 1
- Pre-assemble homework packs for each week
- Bookmark UK Tax Drag's relevant content pages for teacher reference
- For KS5 levels: review the assessment criteria with your faculty to align with school-wide marking standards
Free to use, share, and adapt
This unit is free for all UK teachers to use, share, and adapt for non-commercial educational use. Print, distribute, and modify as needed. We ask only that any reproduction credits UK Tax Drag Kids and links back to kids.uktaxdrag.co.uk.
Homework pack
Four activities to consolidate UK income tax mechanics. ~30 minutes.
Band calculation
What pupils do: For each gross salary, calculate the UK income tax (England/Wales/NI 2026/27 rates): (a) £15,000, (b) £30,000, (c) £55,000, (d) £85,000. Show the band split for each.
Expected output: 4 calculations with band-by-band working.
Marking guidance: 2 marks per accurate total (8 marks). Bonus 4 marks for correct band splits.
Personal Allowance research
What pupils do: What is the Personal Allowance? Why does it exist? Who loses it (the taper rule)?
Expected output: A 3-question short-answer response.
Marking guidance: 2 marks per accurate answer. 6 marks total.
Public spending
What pupils do: Find 5 different things UK income tax pays for. Order them by approximate share of government spending (biggest first).
Expected output: A ranked list of 5 spending categories.
Marking guidance: 1 mark per category, 1 mark per correct relative ranking. 8 marks total (e.g. NHS, pensions, education, defence, welfare).
Extension (optional)
What pupils do: Compare England, Scotland, and Wales income tax for someone earning £50,000. Which nation pays the most? Why?
Expected output: A 3-nation comparison table plus 2-sentence explanation.
Marking guidance: Up to 6 marks for accurate research and conclusion (Scotland pays more above ~£28k).
Family discussion prompt (safeguarding-aware)
Ask a working adult: "Name three things you think our tax money pays for." Compare their answers to what you learned in class.
Classroom safeguarding
Related lesson plans
- Understanding your first payslip (KS3 · Year 7 / Year 8)
- National Insurance — what it is, who pays it (KS3 · Year 8)
- Tax codes and emergency tax — decoding the letters and numbers (KS3 · Year 8 / Year 9)
- All lesson plans (KS1 · KS2 · KS3 · KS4) →