A petition calling on the UK government to raise the Personal Tax Allowance from £12,570 to £20,000 has surpassed 100,000 signatures, triggering an official response and potential parliamentary debate. Supporters argue that the change would help low earners move off benefits and allow pensioners to keep more of their income, especially as the cost of living remains high.
The government is expected to issue an update next week, outlining its position on the proposal. However, with public finances under pressure, it remains unclear whether ministers will consider such a significant tax reform.
What the Petition Demands
The petition urges the government to increase the tax-free personal allowance to £20,000, arguing that this would provide financial relief to both low earners and pensioners. The petition states:
“We think it is abhorrent to tax pensioners on their state pension when it is over the personal allowance. We also think raising the personal allowance would lift many low earners out of benefits and inject more cash into the economy, creating growth.”
Currently, the Personal Tax Allowance stands at £12,570, meaning individuals do not pay income tax on earnings below this threshold. The allowance is gradually reduced for those earning over £100,000, decreasing by £1 for every £2 earned above this amount.
Supporters of the increase argue that, with inflation and the cost of living remaining high, a higher tax-free threshold would allow households to keep more of their earnings, reducing financial strain.
Will the Government Support the Change?
Under parliamentary rules, any petition that gathers over 10,000 signatures receives a formal government response, while those exceeding 100,000 signatures are considered for debate in Parliament. The petition has now reached the 100,000 mark, and according to the official process, it is expected to be reviewed within the next nine days, with a debate date potentially set within four days after that.
However, while the issue has gained widespread public support, the government faces significant fiscal constraints, making it unlikely that such a large increase in the Personal Tax Allowance will be implemented. Raising the threshold to £20,000 would result in a substantial loss of tax revenue, which may be difficult to justify given the ongoing pressures on public spending.
What Happens Next?
The government’s response, expected next week, will clarify its stance on the proposal. While a parliamentary debate may take place, it does not guarantee that any policy changes will be implemented. Previous petitions on tax reform and personal allowances have been debated in Parliament but have not led to immediate legislative action.
As the cost of living crisis continues, the discussion around tax thresholds and financial relief for households remains a key issue. Whether this petition leads to real change or not, the debate highlights growing public concern over the tax burden on lower-income earners and pensioners.
