A petition calling for the change has been well-supported
There is just a week left before a decision will be made on whether to progress a call to substantially increase the personal tax allowance. A petition calling on the UK Government to bump it from its current £12,570 to £20,000 has just one week remaining to secure sufficient signatures for a potential Parliamentary debate.
The petition, launched on the UK Government’s petition website by Shannon Keene, closes on Saturday, February 28, 2026.
Entitled ‘Raise the income tax personal allowance from £12,570 to £20,000’, it states: “This would help with increasing rent, mortgages, Council tax, and Gas and Electric bills. Some families can’t afford to go back to work after children due to childcare costs wiping their whole 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. 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.”
At present, workers can earn £12,570 annually before income tax applies – a threshold referred to as the personal tax allowance. Earnings beyond this amount are then taxed at 20 per cent up to £50,270. Beyond that threshold, income faces 40 per cent tax. Earnings exceeding £125,140 incur 45 per cent.
In last November’s Budget, Chancellor Rachel Reeves decided to prolong the existing income tax freeze, which has been in effect since a Conservative government Budget in 2021, pushing it beyond its initial 2028 end date to 2031, meaning no adjustments are planned for at least another five years. This approach boosts the Government’s revenue by pulling more individuals into paying tax, or higher tax brackets, as earnings rise whilst thresholds remain static.
As of Saturday afternoon, the petition had amassed 73,106 signatures. To trigger a parliamentary debate, it must reach 100,000 before next Saturday’s deadline.
Nevertheless, having surpassed 10,000 signatures, the Government was obliged to respond, which it did prior to the November 2025 Budget.
An HM Treasury spokesperson stated: “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 Government currently has no plans to increase the Personal Allowance to £20,000.
“Increasing the Personal Allowance to £20,000 would come at a significant fiscal cost of more than £50 billion per annum. This 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 £50 billion cut in public services is equivalent to slashing roughly a quarter of the NHS Budget, or around 80% of defence spending.
“To support the lowest-paid workers in our economy, the Government asked the Low Pay Commission to account for the cost of living when making their recommendations on the minimum wage rates to apply from April 2025, for the first time. 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.
“The Government keeps all taxes under review as part of the policy making process. The Chancellor will announce any changes to the tax system at the Budget on the 26th November in the usual way.”