43Key details as UK £18,000 personal tax allowance milestone reached | Wales Online Follow walesonline:
Need to know
The UK Government was obliged to respond
Need to know: petition to raise personal tax allowance gains momentum
- A petition calling for the personal tax allowance to be raised to £18,000 has surpassed 30,000 signatures.
- The petition, created by Mike Haynes, argues that the current £12,570 threshold has been frozen since 2021 and will remain so until 2031. It highlights concerns about “fiscal drag” pulling minimum wage earners and pensioners into the tax bracket as wages rise but thresholds remain static.
- The petition states: “We want to keep some more of our own money. If you are earning minimum wage then you may soon be paying tax because of fiscal drag.”
- The issue particularly affects pensioners, as the New State Pension pays £12,547.60 per year, meaning any additional income from private pensions is likely to attract tax.
- HM Treasury rejected the proposal, stating it would cost over £40 billion annually. The government said this would be “equivalent to slashing roughly a fifth of the NHS Budget in England, or around two-thirds of defence spending.”
- The Treasury, which was obliged to respond when the petition passed 10,000 signatures, emphasised its commitment to keeping taxes low while maintaining public services. It highlighted alternative support measures including childcare provision and cost of living relief through frozen rail fares and energy bill cuts.
- The petition remains live on the Parliamentary website until September and could face parliamentary debate if it reaches 100,000 signatures.
- READ THE FULL STORY: £18,000 personal tax allowance update as milestone passed after UK Government response
