{"id":123731,"date":"2026-07-31T10:30:00","date_gmt":"2026-07-31T09:30:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=123731"},"modified":"2026-07-31T10:18:32","modified_gmt":"2026-07-31T09:18:32","slug":"allowance-deadline-approaches-tax-threshold","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/allowance-deadline-approaches-tax-threshold\/","title":{"rendered":"Allowance Deadline Approaches as Growing Petition Calls for Major Tax Threshold Rise"},"content":{"rendered":"\n

The campaign has attracted attention after frozen tax thresholds led to more people paying income tax as earnings increased. The issue has become part of wider discussions around the effect of fiscal drag <\/strong>on households and pensioners.<\/p>\n\n\n\n

Petition Reaches Towards Parliamentary Debate Threshold<\/h2>\n\n\n\n

The petition, created by Mike Haynes, argues that the current personal allowance should be increased after being frozen at \u00a312,570 since 2021. According to the campaign text, the freeze has meant some people on lower incomes may begin paying tax as wages rise, while some higher earners can reduce their tax bills through existing rules.<\/p>\n\n\n\n

The petition <\/a>has already passed 10,000 signatures, which resulted in an official response from the Treasury. It is now seeking 100,000 signatures, the level required for the issue to be considered for debate in Parliament. The deadline <\/strong>for supporters to sign is 30 September 2026.<\/p>\n\n\n\n

According to the Treasury response, the government currently has no plans to raise the personal allowance to \u00a318,000. The department said such a move would have a fiscal cost of more than \u00a340 billion per year<\/strong> and would also provide greater benefits to higher earners on average than to basic-rate taxpayers.<\/p>\n\n\n\n

The government response stated that income tax thresholds were previously frozen from the 2021\/22 tax year until 2027\/28. It added that the 2025 Budget extended the freeze on personal tax thresholds, including the personal allowance, for a further three years until the end of the decade.<\/p>\n\n\n\n

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Your Top 12 Cost of Living Concerns

Earlier this week I asked which cost-of-living areas you most want @andyburnham<\/a> and @JohnHealey_MP<\/a> to focus on. Many thousands replied across various of my social platforms. As well as looking at individual suggestions – we\u2019ve now tallied the\u2026<\/p>— Martin Lewis (@MartinSLewis) July 24, 2026<\/a><\/blockquote>