How does the Government control debt?
I can explain how national debt is managed and how it affects individuals.
How does the Government control debt?
I can explain how national debt is managed and how it affects individuals.
These resources will be removed by end of Summer Term 2025.
Lesson details
Key learning points
- The UK Government manages national debt by borrowing money, raising taxes and adjusting public spending.
- If debt is too high, austerity measures may be used, meaning cuts to services like education and healthcare.
- High national debt can lead to increased taxes, higher interest rates and rising costs for essentials.
- National debt affects individuals by making it harder to afford housing, transport and everyday living expenses.
- Careful management of national debt is needed to balance economic stability with public safety and wellbeing.
Keywords
National debt - an amount of money owed by the Government that has effects on the country's economy
Austerity - a set of political-economic policies that aim to reduce government budget deficits through spending cuts, tax increases or a combination of both
Common misconception
The UK Government must pay debt off completely, like a household paying off a loan.
Governments often carry debt indefinitely and focus on managing it rather than eliminating it. As long as the Government can afford interest payments and investors have confidence in its ability to repay, borrowing can continue.
To help you plan your year 10 citizenship lesson on: How does the Government control debt?, download all teaching resources for free and adapt to suit your pupils' needs...
To help you plan your year 10 citizenship lesson on: How does the Government control debt?, download all teaching resources for free and adapt to suit your pupils' needs.
The starter quiz will activate and check your pupils' prior knowledge, with versions available both with and without answers in PDF format.
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The assessment exit quiz will test your pupils' understanding of the key learning points.
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Explore more key stage 4 citizenship lessons from the What has the UK economy got to do with me? unit, dive into the full secondary citizenship curriculum, or learn more about lesson planning.
Equipment
Content guidance
- Depiction or discussion of discriminatory behaviour
- Depiction or discussion of sensitive content
Supervision
Adult supervision recommended
Licence
Lesson video
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Starter quiz
6 Questions
receiving money from a lender with the agreement to pay it back later
amount of money owed by an individual or organisation to a lender
handling threats to an organisation's capital and earnings
Exit quiz
6 Questions
amount of money owed by the Government that affects the economy
policies that aim to reduce government budget deficits
a rate charged by a lender of money to a borrower