𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

A petition calling for a substantial rise in the personal tax allowance for UK workers is edging closer to securing a Parliamentary debate, yet has just two days remaining to reach its target. Mike Haynes launched the petition earlier this year, with its deadline falling on Wednesday, September 30, 2026.

The petition urges the Government to raise the threshold at which people begin paying income tax to £18,000. It currently stands at £12,570, a figure that has remained unchanged since 2021 and is set to stay frozen until April 2031.

Supporters of the increase contend that the freeze is triggering what is known as fiscal drag, whereby rising wages push more workers into paying tax to HMRC while the allowance remains static. As a result, growing numbers find themselves liable for tax, with many at risk of being dragged into higher tax brackets as the allowance fails to keep pace with earnings growth.

Frozen since 2021

When he set up the petition, Mr Haynes said: “Since 2021 personal tax allowance has been frozen at £12,570. This freeze was due to expire this year, but the Chancellor of the Exchequer has extended it to 2031.

“We want to keep some more of our own money. If you are earning minimum wage, then you may soon be paying tax because of fiscal drag. Some higher earners pay little or no tax due to clever use of accounting rules. We think this is so wrong.”

As the petition appears on the Parliament petitions website, reaching specific thresholds prompts Government responses. It surpassed 10,000 signatures in April, compelling the Government to issue a statement.

Should it exceed 100,000 by Wednesday, it will be eligible for Parliamentary debate consideration. By Monday morning it had accumulated nearly 84,000 signatures.

‘Should be £16,400’

Speaking last week, Mr Haynes said: “I set it up because people are looking at a pay freeze of 10 years while MPs lap it up. So, if lifted in 2031, our buying powers have been reduced by 35% and that’s just down to inflation – forget about price increases, which probably means we’re closer to 50%. How much money has the Chancellor received due to extortionate petrol and diesel prices?

“Then there’s VAT added to fuel duty – it’s so wrong. I thought VAT wasn’t applied to the necessities of life, but it is. How come it’s added to gas and electricity bills? Had thresholds not been frozen, they would now be in the region of £16,400.”

This week’s petition deadline arrives as Chancellor John Healey prepares to deliver his first Budget on October 28. Whether his stance on the personal allowance matter diverges from that of his predecessor Rachel Reeves is yet to be determined.

Mr Haynes’ petition is not the only one to call for a raise, with several high-profile individuals also backing the change. Last week, Ecotricity owner Dale Vince argued that raising the personal allowance by £3,000 could generate a 1.2% boost to GDP.

Mr Vince argued the measure could be financed by the Bank of England ceasing interest payments to commercial banks on their reserves.

Government’s response

In its May response, after Mr Haynes’ petition surpassed 10,000 signatures and prior to Andy Burnham becoming Prime Minister and Mr Healey Chancellor, HM Treasury said: “The Government is committed to keeping taxes for working people as low as possible while investing in public services and not taking risks with the economy. The previous government froze the main income tax thresholds from 2021/22 until 2027/28 – this means the Personal Tax allowance was not due to rise until April 2028 at the earliest.

“To ensure that the Government can deliver on the public’s priorities, at Budget 2025 it was announced that the personal tax thresholds, including the Personal Allowance, would be maintained at their current levels for a further three years to the end of this decade. The Government currently has no plans to increase the Personal Allowance to £18,000. Increasing the Personal Allowance to £18,000 would come at a significant fiscal cost of over £40 billion per year. This would also benefit higher earners more than basic-rate taxpayers on average.

“Raising the Personal Allowance to £18,000 would reduce tax receipts substantially, decreasing funds available for the UK’s hospitals, schools, and other essential public services that we all rely on. A £40 billion cut in public services is equivalent to slashing roughly a fifth of the NHS Budget in England, or around two thirds of defence spending.

“The income tax system is highly progressive, with different rates of tax sitting above an internationally high Personal Allowance. The Government is making these fair and necessary choices on tax so it can deliver on the public’s priorities. Alongside this, the Government is keeping the contribution as low as possible by pursuing a programme of reform to fix longstanding issues in the tax system.

“To support the lowest paid workers in our economy, the Government has asked the Low Pay Commission to account for the cost of living when making each of their recommendations on the minimum wage rates that have applied since April 2025. The government is also supporting families through the universal offer of 15 hours of government-funded childcare for all parents of 3- and 4-year-olds and eligible working parents of children aged 9 months and above can access 30 hours a week in free childcare.

“At Budget 2025, the Government also announced a package of measures that will bear down on prices and help ease cost of living pressures for working people, targeting everyday expenses. This includes cutting energy bills and freezing rail fares and NHS prescription fees. The Government keeps all taxes under review as part of the policy making process.”

The petition can be viewed here.