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Source-led explainers that connect the live dashboard to the underlying fiscal story.

Income tax vs benefits

Income tax receipts£352bn
Benefits spending£355bn
Income tax receipts
Benefits spending

Rolling 12-month totals to Feb 2026.

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The UK's welfare bill has overtaken its main tax base

The UK now spends more on benefits than it raises from income tax. This article explains how that shift happened, what it reveals about the structure of the public finances, and why it matters for borrowing, growth, and long-term fiscal sustainability.

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Debt-to-GDP

95.0%

2025

Share of debt relative to the economy.

The ratio that tries to put debt in context

How debt-to-GDP works

Debt-to-GDP compares the size of public debt with the size of the economy. It is widely used because it shows the burden of debt relative to national income.

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10-year gilt yield

4.9%

Recent rise

UK borrowing costs have moved sharply higher over the past few years.

Why servicing the national debt suddenly costs much more

Debt interest explained

Gilt yields show the interest rate investors demand to lend to the UK government - and they have risen sharply in recent years. As yields move, they signal how markets view inflation, growth, and the credibility of the UK's finances. They are not set by government, but by investors deciding what it is worth to lend.

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Receipts vs spending

£138bn

2025-26
Receipts
Spending

Spending has stayed above receipts, leaving a borrowing gap to fund.

The spending side of the budget in one view

Where government money goes

Public spending is concentrated in a few very large areas: welfare, health, education and the wider day-to-day running of the state.

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Household vs government debt

Household debt
Government debt

A structural dependence on debt now shapes both households and the state.

Prosperity comes from growth, not borrowing — and the balance has shifted too far.

Borrowing over time

Borrowing is the yearly gap between what the government spends and what it raises. It rises in recessions, crises and when policy choices widen the budget gap. Over time, these shortfalls accumulate into a growing national debt — one that shapes the economy, influences policy decisions, and raises questions about long-term sustainability

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UK vs peer yields

4.5%

Dec 2025
UK 10-year4.5%
G7 average3.4%

UK yields have risen above the G7 average as borrowing conditions tightened.

The market price of government borrowing

Why gilt yields matter

What are gilt yields and why do they matter? A clear guide to UK government bond yields, borrowing costs, mortgages, inflation and the wider economy.

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