Massive Petition Calls for UK Personal Allowance to Rise from £12,570 to £20,000 – Here’s Why

A growing campaign urging the UK government to raise the tax-free Personal Allowance from £12,570 to £20,000 has gained more than 150,000 signatures, sparking widespread debate over taxation policies affecting low earners.

The petition, titled “Stop Taxing Low Earners”, was created in response to the rising cost of living and the continued freeze on the Personal Allowance threshold, which determines the amount of income a person can earn before they start paying tax.

The petition has now crossed the 100,000-signature threshold required for a parliamentary debate, forcing lawmakers to formally consider the proposal.

What Is the UK Personal Allowance?

The Personal Allowance is the amount of income individuals can earn tax-free each year before paying Income Tax. Currently, this figure is set at £12,570 and applies to most UK taxpayers.

• Earnings up to £12,570 – No tax is paid
• Income between £12,571 and £50,270 – Taxed at 20% (basic rate)
• Income between £50,271 and £125,140 – Taxed at 40% (higher rate)
• Income above £125,140 – Taxed at 45% (additional rate)

Why Are People Calling for a Higher Personal Allowance?

The campaign’s primary argument is that the current tax threshold is too low, forcing low-income earners and pensioners to pay tax despite struggling with rising costs.

Key reasons for increasing the allowance include:

• Cost of living crisis – Food, rent, and energy bills have surged, yet the Personal Allowance has been frozen since 2021.
• More low earners paying tax – Due to inflation and wage increases, more people are being pushed into taxation, even if they are not financially well-off.
• Support for pensioners – Many retirees rely on state pensions, and a higher tax-free allowance would help them keep more of their income.
• Encouraging employment – Raising the threshold could incentivize work by allowing people to earn more before being taxed.

Government’s Response: Will the Threshold Be Increased?

The UK government has previously frozen the Personal Allowance at £12,570 until at least April 2028 as part of its efforts to manage the national budget and reduce public debt.

Officials argue that increasing the Personal Allowance would cost the Treasury billions in lost tax revenue, which could impact funding for essential services such as NHS, education, and social welfare programs.

• Chancellor Jeremy Hunt has defended the freeze, stating that it helps the government balance spending priorities while tackling inflation.
• The Office for Budget Responsibility (OBR) estimates that freezing the tax threshold will bring in £30 billion extra in tax revenue by 2028.

Despite these arguments, the growing public pressure and the 150,000+ signatures on the petition may force the government to reconsider its stance, especially ahead of the next General Election.

Who Would Benefit From a Higher Personal Allowance?

If the Personal Allowance were raised from £12,570 to £20,000, it would mean:

• Millions of low earners and pensioners would pay no tax on their income.
• Basic rate taxpayers would save up to £1,486 per year in tax payments.
• It could boost disposable income, helping households cope with rising expenses.
• Self-employed workers would also benefit by keeping more of their earnings tax-free.

What Happens Next?

Since the petition has surpassed 150,000 signatures, it is eligible for a debate in Parliament.

• Parliament will schedule a debate to discuss the proposal and assess its feasibility.
• Government ministers will respond, outlining whether any adjustments to tax policies are planned.
• Economic impact studies may be conducted to evaluate the financial consequences of a higher Personal Allowance.

However, even if Parliament debates the petition, there is no guarantee the government will implement the change. The final decision rests with the Chancellor and the Treasury, who will weigh the costs and benefits.

Final Thoughts

The petition to raise the Personal Allowance from £12,570 to £20,000 reflects growing frustration among UK taxpayers who feel overburdened by rising living costs and frozen tax thresholds.

• With 150,000+ signatures, the campaign has reached a crucial milestone, securing a parliamentary debate.
• The government remains reluctant to increase the allowance due to budget constraints.
• The issue is likely to become a key topic in upcoming elections, as political parties seek to address cost-of-living concerns.

While the debate unfolds, UK taxpayers should stay informed, engage with their local MPs, and explore other financial relief options available through government support programs.

As discussions continue, the public’s voice and pressure on policymakers may influence future changes to the UK’s tax system, shaping the financial landscape for millions of households.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.