Brief 006 August 2026

The Size of the State

The UK civil service shrank by 50% between 1976 and 2016, then grew by 36% in the decade that followed. The public sector now employs more people than at almost any point since privatisation began — and the NHS accounts for the majority of that growth. Meanwhile, productivity has fallen and outcomes on most international measures remain below the OECD average. Six graphics on who works for the state, what they cost, and what the taxpayer gets in return.

524k
Civil service headcount 2026
384k
Lowest point — 2016
+36%
Civil service growth since 2016
1.4m
NHS workforce FTE (2025)
−5.4%
NHS productivity gap vs pre-pandemic
£2.8tn
Public sector net debt (2024/25)
Graphic 032

What Outcomes Tell Us

UK health outcomes compared to peer countries. On five measures — healthy life expectancy, avoidable mortality, cancer survival, A&E wait-to-mortality link, and Commonwealth Fund overall ranking — the UK performs below the OECD average on most metrics despite spending at or above average as a share of GDP. More spending has not produced commensurately better outcomes.

Graphic
Scorecard comparing UK health outcomes vs OECD peer countries across five measures — UK below average on most despite near-average spending
Creator cheat sheet
Cheat sheet 032: UK health outcomes vs OECD peers data and sources
On OBR reform forecasts

OBR savings forecasts for welfare reform are routinely revised and some reforms are subject to legal challenge. The £5.5bn figure reflects Spring Statement 2025 projections. Treat as a projection, not a guarantee.

Graphic 033

What the Debt Figure Doesn’t Include

The headline Public Sector Net Debt (PSND) figure quoted by government and reported in the media is approximately £2.8 trillion. Alongside it sits a £1.4 trillion unfunded public sector pension liability — identified in the OBR’s own Fiscal Risks reports — which does not appear in the PSND headline under ESA10 accounting conventions. Combined, the two figures represent approximately 150% of UK GDP.

Graphic
Public sector net debt vs unfunded pension liability: £2.8tn vs £1.4tn
Creator cheat sheet
Cheat sheet 033: public pension liability, ESA10 accounting, and scheme breakdown
Methodology note

Both figures are from official UK government sources. The pension liability is excluded from PSND under ESA10 international accounting conventions — this is a classification convention, not concealment. The OBR cites approximately £1.4 trillion (most recent); the Whole of Government Accounts 2021–22 cited £2.6 trillion, reflecting different discount rate assumptions. Always cite the specific source and vintage when quoting either figure.

Primary sources

Data Sources

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