As public pressure mounts, MPs are considering a significant rise in the personal tax allowance, responding to concerns over the impact of a frozen threshold on low earners.
As public pressure intensifies, MPs are stepping in to address calls for an increase in the personal tax allowance, currently set at £12,570. Advocates are proposing a considerable rise to £45,000, highlighting concerns that the existing threshold—frozen since 2021—has led to many of the UK’s lowest earners shouldering a heavier tax burden.
A petition launched on the Parliament website has gathered significant momentum, amassing 43,626 signatures from individuals who contend that the current allowance is unjust. The petition has prompted a response from the Government. However, it has faced criticism from an influential committee that deemed the Treasury’s reply insufficient, subsequently ordering a stronger response to the queries raised by advocates.
Denver Johnson, the individual behind the petition, spoke to the Express, stating, “The Personal Allowance is the amount of income a person can get before they pay tax. It stands at £12,570 in 2024. We would like the standard Personal Allowance raised to what we think is a more realistic figure of £45,000.” He articulated concerns that the personal allowance has “been kept unreasonably low for far too long,” adversely affecting the poorest segments of society. Johnson emphasised, “We feel that the poorer majority should pay substantially less than the wealthy,” further suggesting that the current tax system appears to exacerbate the divide between affluent and disadvantaged populations.
Since 2021, the freezing of the income tax threshold has entailed a mechanism known as ‘fiscal drag’, which has gradually pulled millions of low-income individuals into the tax net. Under the current system, the basic income tax rate of 20% is applied to earnings above £12,570, while the higher rate of 40% affects income exceeding £50,270. Neither of these thresholds has seen any adjustments since they were established two years ago.
Economic experts project that this freeze will contribute an estimated £1.2 billion to Treasury coffers by the conclusion of the freeze in 2028. Analysts have pointed out that ‘fiscal drag’ increasingly affects lower-income earners, as more individuals become liable to taxation or inadvertently shift into higher tax brackets due to inflation and stationary thresholds.
The escalating discourse surrounding the personal tax allowance and the implications of fiscal drag signifies a growing awareness of tax policy’s impact on the economic landscape, particularly for those on lower incomes, as stakeholders await further developments on this pressing issue.
Source: Noah Wire Services
- https://www.riftrefunds.co.uk/advice/tax-updates-by-year/25-26-personal-allowance/ – This URL supports the claim that the personal allowance for 2025/26 remains at £12,570 and explains how it affects taxation for individuals earning above this threshold.
- https://www.agmead.co.uk/news/autumn-budget/article/2024/October/personal-tax – This article provides details on the current tax bands, including the basic rate and higher rate thresholds, which have been frozen until April 2028, corroborating the impact of fiscal drag on lower-income earners.
- https://taxscape.deloitte.com/taxtables/deloitte-uk-tax-rates-2025-26.pdf – This PDF document outlines the UK tax rates for 2025/26, including the personal allowance and the thresholds for different tax rates, supporting the information about the current tax system.
- https://petition.parliament.uk/ – This is the official UK Parliament petition website where citizens can create and sign petitions, including those related to increasing the personal tax allowance, as mentioned in the article.
- https://www.express.co.uk/ – The Express is a news outlet where Denver Johnson, the individual behind the petition, shared his concerns about the personal allowance, supporting the article’s narrative about public pressure and advocacy.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative references recent events and ongoing discussions about the personal tax allowance, indicating it is relatively current. However, specific details like the exact date of the petition’s launch or recent government responses are not provided.
Quotes check
Score:
6
Notes:
The quote from Denver Johnson is attributed to the Express, but there is no clear indication of whether this is the original source or if it has been used elsewhere. Further research did not yield earlier references to this specific quote.
Source reliability
Score:
7
Notes:
The narrative originates from the Express, a known publication, but its reliability can vary depending on the topic and sources used. While it is a mainstream outlet, some stories may lack depth or rely on secondary sources.
Plausability check
Score:
9
Notes:
The claims about the personal tax allowance and fiscal drag are plausible and align with economic discussions about tax policy impacts. The proposed increase to £45,000 is a significant change but reflects ongoing debates about tax fairness.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative appears to be current and discusses plausible economic issues. While the source is generally reliable, the lack of specific dates and original sources for quotes slightly reduces confidence. Overall, the content seems accurate but requires further verification for absolute certainty.
