The Civil Service Pensioners Alliance (CSPA) has formally called on Prime Minister Andy Burnham to raise the £12,570 personal tax-free allowance for two specific groups: state pensioners and low-income households. The demand comes as the newly appointed Labour leader prepares to deliver his first Budget alongside Chancellor John Healey on October 28.
CSPA writes to Burnham
CSPA General Secretary Sally Tsoukaris confirmed that the organisation will be contacting Burnham to congratulate him on his recent appointment and to outline the pressing concerns of its members. In a statement, Tsoukaris said: “CSPA will be writing to Andy Burnham to congratulate him on his appointment and to highlight the issues of key concern to CSPA members. He has said that he is committed to the State Pension triple lock and prioritised tackling the ongoing cost-of-living crisis.”
The alliance argues that the current threshold, which has remained at £12,570 since 2021, is dragging more pensioners and lower earners into income tax each year. Tsoukaris stressed: “Key to this is the need to increase Personal Income Thresholds to reduce the numbers of pensioners and others on lower incomes being drawn into paying tax each year.”
Broader commitments and timing
Tsoukaris also referenced Burnham’s pledges on social care reform, noting: “Andy Burnham has indicated his commitment to the early reform of social care provision and the implementation of a national care framework.” She added that CSPA looks forward to seeing these commitments realised in Burnham’s promised 10 Year Plan for Britain and in Healey’s first Budget this autumn.
The call comes ahead of the October 28 fiscal statement, which will be the first major test of Burnham’s economic agenda. The Prime Minister, who succeeded Sir Keir Starmer last month, has already signalled his intent to address household financial pressures, telling The Times that he wants to bring a “tangible” improvement to families. He noted that the tax-free personal allowance threshold was “the thing I heard the most on the doorsteps” while canvassing voters in his Makerfield constituency.
Potential impact of an increase
If the personal allowance were increased in line with September’s CPI inflation figure, the financial benefit would be modest but widespread. According to Kate Steere, personal finance expert at comparison site Finder, basic rate taxpayers would be around £96 better off per year. Higher rate taxpayers earning up to £100,000 would save £192 annually, with the benefit tapering for those earning between £100,000 and £125,140.
Steere commented: “Andy Burnham wants to create ‘breathing space’, but would this be more of a brief exhale than a proper breath of fresh air? These amounts aren’t life-changing, but they would undoubtedly be a nice boost. The scale of these savings is also an undeniable positive - around 40 million Brits would benefit from this.”
What happens next
The CSPA’s intervention adds to growing pressure on the new administration to tackle fiscal drag, which has seen more people pulled into higher tax brackets as wages rise but thresholds remain frozen. With the Budget date set, Burnham and Healey face tough choices on how to balance support for vulnerable groups with broader economic constraints.
Observers note that any change to the personal allowance would require careful costing, but the political benefits could be significant for a Prime Minister who has promised to prioritise cost-of-living relief. The CSPA’s letter is expected to be delivered in the coming days, and further announcements are anticipated as the Budget approaches.
