Petition Urges UK Government to Raise Tax Allowance to £20,000
Wade Reid launched a Parliament petition calling for an increase in the personal income tax allowance to combat fiscal drag for low and middle earners.
A public petition on the Parliament website is calling for the UK government to increase the personal income tax allowance from £12,570 to £20,000. The initiative, started by Wade Reid, argues that frozen tax thresholds since 2021 have created fiscal drag, which forces low and middle earners to pay more tax in real terms as wages rise with inflation.
Chancellor of the Exchequer John Healey maintained the freeze in the recent budget. He stated that plans for thresholds are set for the next few years, although he acknowledged that some parts of the system require fixing and that bigger changes may occur in the long term. Analysis from AJ Bell indicates that raising the allowance to £16,000 would cost approximately £35 billion.
If the petition reaches 10,000 signatures by November 14, HM Treasury must provide a formal response. The movement highlights ongoing pressure on individuals and households facing rising living costs while tax thresholds remain stagnant.
