A major public campaign to dramatically increase the amount of money people can earn before paying income tax has reached a crucial milestone. A petition calling on the government to raise the HMRC Tax-Free Personal Allowance to £20,000 has now been signed by more than 44,000 people.
Halfway to a Parliamentary Debate
This significant figure means the campaign is now halfway towards the 100,000 signatures required for the issue to be considered for a debate in the House of Commons. The petition is directed at the Labour Party government, urging it to increase the threshold from its current level of £12,570. The petition argues that the change is desperately needed to help households cope with soaring living costs.
The Public's Case for Change
The petition's statement makes an emotional and economic plea. It states that raising the allowance would provide vital assistance with rising rents, mortgage payments, Council Tax, and energy bills. It highlights a specific crisis, noting that some families find it impossible to return to work after having children because childcare costs can wipe out their entire income.
"We think that we are currently paying ridiculous amounts of tax, and that minimum wage isn't even enough to support an average family," the petition reads. "We believe that this would lead to a massive increase on people willing to look for work, instead of people not wanting to, due to it being too expensive to now live."
Government's Stance and Tax Rules Explained
The government, however, has already issued a firm response to the campaign. In an official response dated 17 November 2025, it stated: "The Government is committed to keeping taxes for working people as low as possible while ensuring fiscal responsibility, so we will not increase the Personal Allowance to £20,000."
For context, the standard Personal Allowance of £12,570 is the amount of income an individual does not pay tax on. This allowance is gradually reduced for higher earners. It decreases by £1 for every £2 of adjusted net income above £100,000, meaning anyone earning £125,140 or more receives no Personal Allowance at all.
Separate tax-free allowances also exist for:
- Savings interest and dividend income from shares.
- The first £1,000 of income from self-employment (the 'trading allowance').
- The first £1,000 of income from property rental.
With the petition still open and gathering momentum, the campaigners now face a race to secure the remaining 56,000 signatures needed to potentially force the issue onto the parliamentary agenda and challenge the government's current position.
