The National Fund itself dates back to 1927, when an anonymous donor gave around £500,000 in cash and investments.

The Debt Management Office has confirmed it will cancel £607.4 million of government debt on January 9, 2026, using money from the National Fund.

The debt being cancelled takes the form of a government bond, known as a gilt, which pays an interest rate of four per cent and was originally due to mature on January 29, 2027.

Unlike most government bonds, this gilt is not held by private investors.

Instead, it sits in the Donations and Bequests Account, a state-run account that holds money donated specifically to help reduce the national debt.

That account is overseen by the Commissioners for the Reduction of the National Debt, a long-standing institution responsible for managing such funds.