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Government spending on health has grown substantially across rich nations since 1990, with particularly steep increases in the United States. The chart shows healthcare spending as a share of gross domestic product (GDP) in four countries.

Japan and the UK saw their share more than double, while it more than tripled in the United States, from 4.5% to 16% of GDP. The rising costs partly reflect demographic change, as older populations typically need more medical care, as well as the COVID-19 pandemic.

Each country organizes healthcare differently. Germany requires everyone to buy insurance from regulated providers, while Japan gives everyone government insurance. The United Kingdom provides healthcare directly through its national health service, while the US combines private insurance with government coverage for the elderly and those on low incomes.

Explore government health spending for more countries →

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When asked where public spending should be reduced most, around 60% of people in the UK suggest cutting foreign aid.

However, people overestimate how much the UK spends on aid: last year’s UK Public Expenditure Statistical Analyses show that overseas aid amounted to £5.1 billion — just about 74 pounds per person.

As the chart shows, this is a tiny part of public spending, making up only 0.5% of the total budget.

To put this in perspective, the UK spends much more on other areas: over eight times as much on public order and safety, ten times more on defense, and forty times more on each of the two biggest expenses: health and welfare.

Spending is not much higher if we also consider funds dedicated to supporting refugees in the UK itself.

This situation is not specific to 2023: the UK’s foreign aid spending has been at similar levels for decades and is in line with what other wealthy countries spend. Compared to the size of its budget and economy, foreign aid is a relatively small expense.

Explore spending on foreign aid in the UK and other countries →

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The chart shows that in the late 19th and early 20th centuries, governments’ social spending amounted to very little. Countries spent, at most, 1 to 2% of their national income on public social services.

This changed significantly over the 20th century: public social spending in wealthy countries now amounts to between 15% and 30% of national income.

The biggest reasons for this increase are higher expenditure on healthcare and education.

This data comes from the OECD and Peter Lindert’s history of social spending.

Read more about the history of government spending →