UK Government Rejects Petition to Raise Tax-Free Allowance

The Government of the United Kingdom has rejected a public petition calling for the tax-free Personal Allowance to be increased from £12,570 to £18,000. The campaign, initiated by Mike Haynes, has gathered 49,123 signatures as of August 7, 2026. Petitioners argue that frozen tax thresholds since 2021 have created fiscal drag, forcing low-wage earners to pay income tax as their nominal wages rise.

Government officials stated that raising the allowance to the requested level would result in a fiscal cost exceeding £40 billion per year. The current allowance is scheduled to remain frozen at £12,570 until 2031.

The petition remains open until September 30, 2026. If the campaign reaches 100,000 signatures, the proposal may be considered for a formal parliamentary debate.