UK Government Rejects Petition to Raise Tax-Free Allowance

The Government of the United Kingdom rejected a proposal to increase the Personal Allowance—the income threshold workers earn before paying income tax—from £12,570 to £18,000. The decision follows a petition created by Mike Haynes that has gathered nearly 65,000 signatures. The petition argues that frozen thresholds since 2021 have created fiscal drag, forcing more workers, including those on minimum wage, into the tax system.

Government ministers stated that increasing the allowance to £18,000 would cost more than £40 billion per year. Officials argued this would reduce funding for public services and provide disproportionate benefits to higher earners.

While the allowance was previously scheduled to rise in April 2028, the government announced during Budget 2025 that thresholds will remain frozen until April 2031. The petition must reach 100,000 signatures by September 30, 2026, to be considered for a parliamentary debate.