---

Government grants statistics

In 2023/24, the government spent around £153.2 billion in the form of grants. This represents around 12.5% of all government spending for that year.

Grants are divided into two main types: formula grants, where funding is distributed to a particular class of recipients using a mathematical formula, and general grants, which are given for a particular purpose. General grants can be classified further depending on whether recipients compete for funding, have to demonstrate that they meet certain criteria, or are simply given funding directly.

In most years grants generally go to organisations like local authorities, public bodies and charities, although in 2020/21 and 2021/22 many also went to individuals in the form of furlough and self-employment support payments.

According to Cabinet Office data, the education sector usually accounts for over half of all grants. However, in 2020/21, support grants provided to help cope with the effects of covid-19 meant that economic affairs was the largest sector. Most grants are under £1 million, but there were also a few very large grants – the recipients who received the most tended to be local authorities and large international institutions.

Most formula grants are given to local authorities, largely for education. General grants tend to go to a wider range of organisations, including universities, public bodies, and businesses.

Organisations based in London typically received the largest grants, with smaller concentrations in other cities. A small number of grants went to other countries.

There are several sources of grant funding, and the Library can provide a number of resources to help constituents to find funding appropriate for their circumstances.