A public petition demanding the UK government raise the personal income tax allowance from £12,570 to £20,000 has rapidly gained momentum, gathering over 213,000 signatures by mid-March 2025. Launched by campaigner Alan Frost, the petition has now crossed the crucial threshold required to trigger a formal debate in Parliament, scheduled for May 12, 2025.
What Is the Personal Tax Allowance?
The personal tax allowance is the amount of income an individual in the UK can earn before they begin paying income tax. It currently stands at £12,570 and has remained frozen since the 2018/19 tax year.
This threshold applies to most taxpayers in the UK and is a key component of the tax system. For more information, visit the official UK Government’s Personal Allowance page.
Why Is the Petition Gaining Support?
Supporters of the petition argue that a rise to £20,000 would offer meaningful financial relief to millions of low-income workers, pensioners, and families, particularly during the ongoing cost-of-living crisis. With inflation, energy bills, and rent prices remaining high, many believe the frozen threshold is out of step with economic reality.
In his petition, Frost explains the rationale:
“Raising the tax-free allowance would reduce the tax burden on those who need support the most and put more money into the real economy.”
The Numbers Behind the Movement
As of March 21, 2025, the petition has gathered 213,000+ signatures, far exceeding the 100,000 required for Parliament to consider a debate. The official petition can be viewed on the UK Government and Parliament Petitions website.
The widespread support reflects a growing sense of frustration among taxpayers, particularly as the personal allowance has not risen in line with inflation. Some experts argue that if the allowance had been adjusted for inflation annually since 2018, it would already exceed £15,000 today.
Government Response: “No Plans to Change”
On February 20, 2025, the UK Government issued an official response to the petition. While it acknowledged the importance of supporting working people, the government dismissed the proposal to raise the threshold to £20,000, citing the fiscal implications.
“Raising the personal allowance to £20,000 would significantly reduce the government’s tax revenues and limit its ability to fund vital public services such as healthcare, education, and defense,” the statement noted.
What Happens Next?
With the petition officially triggering a debate, MPs will discuss the proposal on May 12, 2025. The session will be broadcast live on the UK Parliament’s official YouTube channel and will be open to the public for viewing.
The outcome of the debate will not guarantee policy change but could influence future tax reform discussions, especially with a general election on the horizon.
How It Impacts Pensioners and Low Earners
Many pensioners are especially affected, as the state pension has increased in recent years, pushing some retirees just above the personal allowance threshold. This has led to unexpected tax bills for those with limited income.
Similarly, low-income earners who receive universal credit or other benefits may find themselves taxed more, reducing their take-home pay and increasing reliance on government aid.
According to Startups.co.uk, raising the personal allowance would also help some people exit the benefits system altogether—potentially reducing the administrative burden on the Department for Work and Pensions (DWP).
Broader Economic Implications
Economists suggest that raising the allowance could stimulate consumer spending, injecting more money into the economy. However, the trade-off remains the loss of government tax revenue, estimated in the tens of billions of pounds annually.
In contrast, public sentiment is increasingly in favor of a more progressive tax system, where higher earners pay more and those on lower incomes are spared.
A recent Guardian article captured the mood of many Britons ahead of the spring budget:
“The rich need to pay more. It’s that simple. The working class is being squeezed from every direction.”
Final Thoughts
Whether or not Parliament agrees to raise the personal tax allowance, the petition has successfully sparked national debate. With over 200,000 signatures and a debate on the horizon, the pressure is now on the government to re-evaluate its tax strategy amid growing public dissatisfaction and economic uncertainty.
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