A critical seven-day countdown is now underway for a public petition demanding a substantial increase in the personal tax allowance, which could potentially force a parliamentary debate on the issue. The petition, calling for the allowance to be raised from its current level of £12,570 to £20,000, must secure 100,000 signatures by Saturday, February 28, 2026, to trigger that debate.
Petition Details and Public Support
Launched by Shannon Keene on the UK Government's official petition website, the initiative is titled 'Raise the income tax personal allowance from £12,570 to £20,000'. It argues that such a change would provide crucial relief for families struggling with rising costs of living, including escalating rents, mortgages, council tax, and energy bills.
The petition statement highlights specific concerns: "Some families can't afford to go back to work after children due to childcare costs wiping their whole income! We think that we are currently paying ridiculous amounts of tax, and that minimum wage isn't even enough to support an average family." Proponents believe the increase would significantly boost workforce participation by making employment more financially viable.
Current Tax Structure and Government Position
Currently, workers can earn £12,570 annually before income tax applies. Earnings above this threshold are taxed at 20% up to £50,270, then 40% up to £125,140, with anything beyond that facing a 45% rate. In November's Budget, Chancellor Rachel Reeves extended the existing income tax freeze—originally implemented by a Conservative government in 2021—from its planned 2028 end date to 2031. This freeze means thresholds remain static while wages rise, effectively pulling more people into tax brackets and increasing government revenue.
As of Saturday afternoon, the petition had gathered 73,106 signatures. Having already surpassed 10,000 signatures, it compelled a government response prior to the November 2025 Budget. An HM Treasury spokesperson stated: "The Government is committed to keeping taxes for working people as low as possible while investing in public services and not taking risks with the economy. The Government currently has no plans to increase the Personal Allowance to £20,000."
Fiscal Implications and Alternative Support Measures
The Treasury emphasized the significant cost of such a change, estimating it would reduce tax receipts by more than £50 billion annually. This reduction would substantially decrease funding available for essential public services like hospitals and schools. A £50 billion cut in public services is equivalent to slashing roughly a quarter of the NHS Budget, or around 80% of defence spending, the spokesperson noted.
Instead, the government pointed to other measures aimed at supporting low-income workers and families. These include asking the Low Pay Commission to consider the cost of living when recommending minimum wage rates from April 2025, and expanding childcare support through universal offers of 15 hours for parents of 3- and 4-year-olds, with eligible working parents of children aged 9 months and above accessing 30 hours weekly.
The Treasury concluded that all taxes remain under review as part of the policy-making process, with any changes to be announced by the Chancellor at the Budget on November 26 in the usual manner. With the petition deadline looming, the coming week will determine whether this call for tax reform gains enough traction to reach the parliamentary floor.
