More than 62,000 people have backed a petition calling for the amount people can earn before paying Income Tax to be increased to £18,000. The petition on the UK Parliament website argues for raising the Personal Allowance from its current level of £12,570, citing concerns about frozen tax thresholds affecting household incomes.
Petition details and Treasury response
The petition, created by Mike Haynes, will remain open until September 30. It argues that increasing the tax threshold would allow people to keep more of their earnings. The Personal Allowance, the amount most people can earn before paying Income Tax, has remained at £12,570 since the 2021/22 tax year.
The petition also raises concerns about fiscal drag, which can result in more people paying Income Tax or moving into higher tax bands as wages increase while tax thresholds remain frozen. It 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.”
The petition has already passed the 10,000-signature threshold required to receive a formal UK Government response. However, the Treasury has rejected the proposal and warned that increasing the Personal Allowance to £18,000 would cost more than £40 billion every year. It said: “The Government currently has no plans to increase the Personal Allowance to £18,000.”
Impact on public services and tax freeze extension
The Treasury said the change would substantially reduce tax receipts and argued higher earners would benefit more than basic-rate taxpayers on average. It added: “Raising the Personal Allowance to £18,000 would reduce tax receipts substantially, decreasing funds available for the UK’s hospitals, schools, and other essential public services that we all rely on.”
The Government said the £40 billion cost would be equivalent to around a fifth of the NHS budget in England or approximately two-thirds of defence spending. Income Tax thresholds were initially frozen by the previous government from 2021/22 until 2027/28, meaning the Personal Allowance was not due to increase until April 2028 at the earliest. Budget 2025 subsequently extended the freeze for another three years to the end of the decade, so the Personal Allowance is set to remain at £12,570 until April 2031.
The Treasury said the decision was necessary to help fund public services and insisted the UK's Income Tax system remained “highly progressive”. It also highlighted measures aimed at supporting households with living costs, including increases to the minimum wage and help with childcare costs. The UK Government added it “keeps all taxes under review as part of the policy making process”. If the petition reaches 100,000 signatures before it closes, it will be considered by the Petitions committee for debate in Parliament.
