Public finances: Economic indicators
The public finances include government borrowing and debt. Find the latest data on UK borrowing and debt as well as forecasts for the future.
On Tuesday 24 June 2025, the House of Commons will consider estimates of spending of the Department for Education as part of the Estimates Day debate.
Estimates day: The spending of the Department for Education (489KB PDF)
On Tuesday 24 June 2025, there will be an Estimates Day Debate on the spending of the Department for Education (DfE). The topic for the debate was proposed by the Backbench Business Committee, on application from Helen Hayes MP, Chair of the Education Committee. Following the debate, the House will vote on whether to approve the Main Estimate for the Department of Education for 2025/26.
DfE proposes a Resource DEL (day-to-day spending) budget of £100,619.8 million for 2025/26, a £12,052.7 million (-10.7%) decrease from the Department’s budget for 2024/25 of £112,672.6 million.
The main driver of this decrease is a reduction of £17,948.8 million in budgeted Resource DEL for costs associated with the student loan book. This includes the RAB charge (the portion of student loans issued which is not expected to be repaid), and overall the student loan book is a highly variable area sensitive to wider economic factors. The budget for 2025/26 will be reviewed at the Supplementary Estimate to ensure appropriate budget cover for the remainder of the year.
Additional drivers of this decrease include:
This has partially been offset by the following increases:
DfE proposes a Capital DEL (investment spending) budget of £6,777.7 million for 2025/26, a £1,060.6 million (+18.6%) increase from the Department’s budget for 2024/25 of £5,717.1 million. The main drivers of this increase include:
This is partially offset by:
DfE proposes a Resource AME (demand-led day-to-day spending) budget of £-4,037.5 million for 2025/26, a £5,085.4 million (-485.3%) decrease from the Department’s budget for 2024/25 of £1,047.9 million. The main driver of this decrease is an increase in budgeted income of £5,062.7 million relating to student loan assets. This in turn driven by an increase in RPI forecasts compared with 2024/25. This also reflects the standard practice of including headroom against the department’s forecast at the Supplementary Estimate (given the sensitivity of the valuation to macroeconomic changes).
DfE proposes a Capital AME (demand-led investment spending) budget of £29,751.0 million for 2025/26, a £3,684.7 million (-11.0%) decrease from the Department’s budget for 2024/25 of £33,435.6 million. The main driver of this decrease is an improved earnings outlook in respect of student loans, leading to a £3,589.5 million decrease in Capital AME. This effectively represents an increase in the repayments forecast. There has also been a £78.6 million decrease in costs associated with further education loans resulting in a net income position of £0.2 million. This is again driven by a more optimistic earnings outlook.
The budgets for Resource and Capital AME relating to student loans will be revised at the Supplementary Estimate in line with DfE’s usual practice and the annual revaluation of the student loan book.
The full debate pack, available to download as a PDF using the buttons above and below this summary, provides policy and funding background, and a selection of commentary, on:
Estimates day: The spending of the Department for Education (489KB PDF)
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