UK central government debt interest

Source: Office for National Statistics (ONS), series NMFX. Monthly, usually around the third week of the month, 7am; next release 21 October 2026

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What it measures

This is the interest central government owes in a month on its debt, mainly on gilts (government bonds) and Treasury bills. It is recorded when interest accrues, not when the cash is paid. For index-linked gilts, the rise in the amount to be repaid at maturity, which tracks the Retail Prices Index (RPI), is counted as interest as it builds up, even though it is paid only when the gilt is redeemed. Debt interest is part of public spending and so adds to public sector net borrowing.

How to read it

Monthly figures jump around mainly because the RPI uplift on index-linked gilts moves with inflation, and the RPI can rise or fall from month to month. In August 2026, £2.1 billion of the £8.8 billion reflected that RPI uplift. Compare the financial year to date with the same months a year earlier, as the ONS does: £50.0 billion in April to August 2026, against £49.3 billion a year before. Cash figures are not adjusted for inflation or the size of the economy; the OBR publishes debt interest as a share of GDP and of revenue in its databank. Bank of England quantitative easing also affects the public sector's overall interest costs.

Background

The ONS monthly series starts in April 1997. The highest monthly figure is £20.1 billion in June 2022, when the 12-month RPI rate was 11.8%, and the lowest is minus £0.1 billion in March 2019. Calculated from the series, debt interest totalled about £107.7 billion in calendar year 2022 and about £97.6 billion in 2025. The ONS said the £8.8 billion recorded in August 2026 was the highest August figure since monthly records began in 1997, not adjusted for inflation.

How much does the UK pay in interest on its debt?

When this page was checked on 13 October 2026, the ONS reported central government debt interest payable of £8.8 billion in August 2026 and £50.0 billion in the financial year to August 2026, published on 22 September 2026. OBR forecasts give the expected total for the full financial year.

Why does inflation increase debt interest?

A large share of UK government debt is in index-linked gilts, whose repayment value rises with the RPI. The ONS records that rise as interest as it accrues. So when RPI inflation is high, debt interest jumps even if no new borrowing takes place. Check the Debt Management Office for the current share of index-linked gilts.

How much is UK debt interest per day?

Dividing a monthly or annual figure by the number of days gives an average, but official sources do not publish a daily figure and the monthly amounts vary widely. Quote the monthly or financial-year figure from the ONS with its period instead.

Is debt interest the same as the deficit?

No. Debt interest is one item of spending. The deficit, public sector net borrowing, is total spending, including debt interest, minus total receipts. The ONS also publishes the current budget deficit, which leaves out spending on investment.

Who receives the interest on UK government debt?

Whoever holds the gilts: pension funds, insurers, overseas investors, banks and others. The Bank of England also holds gilts bought under quantitative easing; the Debt Management Office and the Bank publish data on gilt holdings.

Related questions

• How much does the UK spend on debt interest?
• What is the UK national debt?
• How much is the UK government borrowing?
• What is the OBR and what does it forecast?
• What is the UK debt to GDP ratio?

More on this source: Office for Budget Responsibility (OBR)