A petition calling for the HMRC personal tax-free allowance to rise to £18,000 will remain open until 30 September 2026, with more than 63,000 people already backing the call. The Labour government, led by Prime Minister Andy Burnham, faces pressure to address the freeze on the allowance, which has remained at £12,570 since 2021.
The petition argues that the freeze, originally due to expire this year, has been extended by the Chancellor of the Exchequer to 2031. It states: "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."
Petition nearing parliamentary debate threshold
As of the latest count, the petition has gathered 63,392 signatures. If it reaches 100,000 signatures, it will be considered for debate in Parliament. The petition was launched in response to the prolonged freeze, which has drawn criticism from campaigners and taxpayers alike.
Prime Minister Andy Burnham has indicated that while there is no immediate commitment to change the personal tax-free allowance, the matter could be considered at the next Budget. Speaking to The Times last month, Burnham said the "frustration about the personal allowance" he heard while campaigning in the Makerfield by-election was "lodged in my mind."
Prime minister's stance on potential change
Burnham told reporters that "all of this will be looked at" in the next Budget, but conceded that any change would be expensive and "difficult given the financial circumstances in which we find ourselves." He emphasised the importance of honesty in politics, saying: "It's funny these days you can't answer a question honestly without people then reading everything else into it.
"I want to answer questions honestly in this job, as I said before. I think that's all about trust in politics and doing politics differently, and I'm determined to keep working in that way. It's just perhaps the way politics is these days and the way people report things, but that was an honest answer."
Impact of fiscal drag on low earners
The petition highlights the impact of fiscal drag, where wage increases push more people into paying tax, particularly those earning the minimum wage. With the allowance frozen until 2031, many lower-income workers may soon find themselves paying tax for the first time, while higher earners can reduce their tax liability through legal accounting measures.
Burnham concluded: "There is no commitment at this point to change, but we will look at that at the Budget." The petition remains open for signatures until the end of September, and its outcome could influence fiscal policy discussions in the coming months.
