A petition calling on the government to increase the personal tax-free allowance to £18,000 for all workers has reached 50,000 signatures on the Parliamentary website, bringing it halfway to the threshold required for a possible Commons debate. The milestone puts pressure on Prime Minister Andy Burnham, who has acknowledged the issue is a frequent concern raised by voters.
Petition Progress and HMRC Rules
The petition, which remains open until 30 September 2026, needs 100,000 signatures to be considered for debate in Parliament. Under current HMRC rules, the personal tax-free allowance stands at £12,570, a figure that has been frozen since 2021. The freeze was originally due to expire this year, but the Chancellor of the Exchequer has extended it to 2031.
The petition states: "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."
Andy Burnham's Acknowledgment
Mr Burnham has admitted that the frozen allowance has been a common complaint during his time canvassing in his Makerfield constituency, before his byelection win and subsequent rise to Labour Party Prime Minister earlier this year. In an interview with The Times, he said the five-year freeze at £12,500 was "the thing I heard the most on the doorsteps."
He added: "So when people, they’re just characterising me as a tax raiser, well again, it’s never that simplistic is it? The breathing space point is a really serious one. How do we just make people feel better?"
Potential Debate and Future Implications
If the petition reaches 100,000 signatures, it will be considered for debate in Parliament. With the petition open until 30 September 2026, there is ample time to gather the additional signatures needed. Mr Burnham has not ruled out imposing a wealth tax in office, and in an interview with Gary Lineker, he suggested some individuals may have to pay "a little more."
The outcome of the petition could influence future tax policy discussions, particularly regarding the personal allowance and fiscal drag, affecting low-income earners and prompting broader debates on taxation fairness.
