A growing online petition calling for the UK government to raise the income tax personal allowance from £12,570 to £20,000 for all workers and state pensioners has surpassed 259,000 signatures, reflecting public frustration over frozen thresholds and increased tax burdens amid a cost-of-living crisis.
What Is the Petition About?
Started by David Allan Frost, the petition criticises the current tax treatment of pensioners and low-income workers. Frost argues that it is “abhorrent to tax pensioners on their state pension” and that raising the personal allowance would not only lift thousands out of the tax net but also boost consumer spending, potentially helping economic growth.
He added: “Raising the personal allowance to £20,000 would lift many low earners out of benefits and inject more cash into the economy, creating growth.”
Government Response: No Plans to Raise Threshold
The government officially responded to the petition on February 20, 2025, and Parliament debated the issue on May 12, 2025. Despite the widespread public support, ministers ruled out the proposal.
In the response, HM Treasury stated:
With the petition still open until June 20, 2025, campaigners hope further political pressure may lead to reconsideration, especially as the government prepares its next fiscal strategy amid widespread calls for tax reform.
Why Is This an Issue?
Currently, the Personal Allowance — the amount you can earn before paying income tax — has been frozen at £12,570 since 2021, despite inflation and rising incomes. Because of this, more workers and pensioners are being pulled into higher tax brackets — a phenomenon known as “fiscal drag.”
Many state pensioners now risk paying tax on their State Pension, especially if they receive additional income or were part of schemes such as SERPS (State Earnings-Related Pension Scheme) or the Additional State Pension.
| Pension Type | Weekly | Annual |
|---|---|---|
| Full New State Pension | £230.25 | £11,973 |
| Basic State Pension | £176.45 | £9,180 |
This means retirees with any extra income — even small savings or private pensions — could breach the £12,570 threshold and face taxation on what many view as basic retirement income.
Related Petitions and Growing Discontent
A second petition — with over 6,000 signatures — is also gaining traction. It calls for the state pension to be made tax-free, stating: “We think it is wrong to tax the state pension.”
Meanwhile, over one million pensioners are now said to be facing a “triple tax whammy” due to frozen thresholds, taxed pension income, and inflation-driven bracket creep.
What Do Campaigners Want?
Supporters of the £20,000 Personal Allowance proposal believe it would:
- End the practice of taxing modest state pensions
- Lift low earners and part-time workers out of the tax system
- Reduce reliance on benefits like Universal Credit
- Provide immediate disposable income for households
There is also a belief among some economists and MPs that this move would simplify the tax system, reduce administrative costs, and generate economic stimulus through consumer spending.
Will the Government Change Course?
As of now, there’s no indication the government plans to alter the threshold before April 2028, when the current freeze is scheduled to end. However, continued public and political pressure could influence future Budgets, especially with looming concerns over tax fairness and pensioner poverty.
For now, the petition remains active and open for further signatures at petition.parliament.uk/petitions/710017.
FAQs:
What is the current Personal Allowance?
The income tax personal allowance is £12,570 for the 2025/26 tax year.
Why is there a push to raise it to £20,000?
Supporters say it would remove more low earners and pensioners from paying tax and inject money into the economy.
Do pensioners currently pay tax on their state pension?
Yes, if their total income exceeds the £12,570 personal allowance.
Will the government increase the allowance to £20,000?
Not currently. The Treasury has said it would cost billions and they have no plans to do so.
