Andy Burnham is under pressure to unfreeze the personal allowance in the Budget after more than 250,000 people signed a petition. Campaigners are calling on the Prime Minister to raise the tax-free amount by at least £1,000 to stop pensioners on modest incomes being dragged into paying tax.
Petition gathers over 273,000 signatures
The personal allowance has been frozen at £12,570 since 2021 in a major stealth tax and is due to remain at that level until 2031. A petition by Silver Voices has gathered more than 273,000 signatures ahead of the Budget.
Director Dennis Reed said: "With energy prices likely to increase catastrophically in January, all pensioners on modest incomes must receive significant and instant support in the Budget."
Call for immediate action
Reed added: "The best way to do this, which would benefit all low-income households, is to lift the freeze on lower tax thresholds and raise the personal allowance by at least £1,000 from January 1.
"Andy Burnham noted that the number one priority on the doorsteps of Makerfield in his by-election campaign was the frozen thresholds issue and that he would look at it. The time for looking at it is over – our huge petition shows it is now time to act urgently."
He warned: "If significant energy support is not forthcoming in the Budget, Burnham will have betrayed older people again, and thousands will die from cold-related conditions, which could have been avoided if promises had been kept. Warm words do not make warm homes – only cold cash can do that."
State pension set to exceed threshold
The full new state pension is set to exceed the personal allowance from next April due to increases under the triple lock, with which payments rise by whichever is highest out of average earnings, inflation and 2.5%.
Former chancellor Rachel Reeves confirmed last year that OAPs whose only income is the state pension would not have to pay income tax, but no details have been set out yet on how this will work.
The PM raised hopes that he could unfreeze the personal allowance shortly after entering 10 Downing Street in July. He said the issue was "lodged in my mind" after it was the thing he heard most on the doorstep while campaigning in the Makerfield by-election.
Mr Burnham later insisted there was no immediate commitment to increase the tax-free amount but that it would be looked at in the Budget.
