20th June 2026
The Whole of Government Accounts reveal the UK’s largest financial obligations — the debts and promises the state must honour over decades. These liabilities are huge, and understanding them is essential for understanding future tax and spending pressures.
Here are the biggest ones, explained simply.
1. Public Sector Pensions
This is the largest liability in the WGA.
It includes pensions for:
NHS staff
Teachers
Civil servants
Armed forces
Police and firefighters
These pensions are unfunded, meaning they are paid from future tax revenues, not from investment funds.
What it means for taxpayers:
Future governments must raise enough tax to pay these pensions as they fall due.
As the population ages, this pressure grows.
2. NHS Clinical Negligence Claims
The second‑largest liability.
This covers compensation the NHS expects to pay for medical negligence cases — often stretching decades into the future.
Why it’s huge:
Claims are rising
Awards for lifetime care are expensive
Legal costs are high
What it means for taxpayers:
The liability grows faster than inflation, putting pressure on NHS budgets.
3. Government Borrowing (Gilts)
This is the national debt in accounting terms.
It includes:
Bonds issued to investors
Interest owed
Short‑term borrowing
What it means for taxpayers:
Higher interest rates mean higher debt‑servicing costs — money that cannot be spent on services.
4. Nuclear Decommissioning
The UK must safely dismantle old nuclear sites.
This is a long‑term, extremely expensive obligation.
What it means for taxpayers:
Costs stretch over decades and often exceed initial estimates.
5. Public‑Private Partnership (PPP/PFI) Contracts
These are long‑term contracts for schools, hospitals, and infrastructure built by private companies.
What it means for taxpayers:
Payments continue for decades, even when assets age or become inefficient.