A new petition is gaining momentum across the UK, calling on the government to raise the personal tax-free income allowance from £12,570 to £20,000. The move is seen as a much-needed relief for families struggling with the high cost of living — including rent, mortgages, childcare, and rising utility bills.
With the cost of living climbing faster than wages, many UK families are struggling to keep up. From rising rent and mortgage payments to higher Council Tax, gas, and electricity bills — household budgets are stretched thin.
One big change that could bring relief is increasing the personal tax-free income allowance from £12,570 to £20,000.
This single move could make a real difference in people’s lives — especially for low and middle-income earners who are currently hit hardest by today’s economic pressures.
The Reality for Working Families
Many families say working full-time no longer guarantees a decent standard of living. Some key problems they face include:
- High taxes on low incomes: Even those earning just above the current threshold are paying tax while still struggling to cover basic expenses.
- Unaffordable childcare: Parents who want to return to work often find that nursery fees wipe out their entire income.
- Wages not keeping up with inflation: The minimum wage is no longer enough to support an average family, especially in urban areas.
- Rising living costs: Essentials like rent, food, energy, and transport have become much more expensive over the past few years.
How a Higher Personal Allowance Could Help
If the tax-free personal allowance was raised to £20,000, people would be able to keep more of what they earn — especially those on lower wages.
Here’s how it would help:
- More take-home pay: Workers would keep up to £1,486 more of their earnings each year.
- Incentive to return to work: Parents who gave up jobs due to childcare costs may find it worthwhile to work again.
- Reduced pressure on benefits: Families who earn more would need less support from the state.
- Economic boost: More people working and spending would increase economic activity.
Why It’s Needed Now
The UK is facing a situation where many full-time workers are still unable to afford basic living costs. This has led to a growing feeling that the system is unfair — that people are being taxed heavily while receiving little support.
By raising the personal allowance, the government would show support for working people, especially those trying to improve their lives. It would also help reduce poverty and encourage more people to look for work without the fear of being worse off financially.
The Bigger Impact
While increasing the tax allowance won’t solve all problems overnight, it’s a strong step in the right direction. It would make work more rewarding, ease pressure on struggling families, and bring more fairness into the tax system.
In the end, people don’t want handouts — they want to work and be able to live with dignity. Making the first £20,000 of income tax-free could be a real game-changer for millions of households across the UK.
What Happens Next?
- Government Response at 10,000 Signatures: Once the petition crosses 10,000 signatures, the UK government is required to provide an official response.
- Parliament Debate at 100,000 Signatures: If the petition reaches 100,000 signatures, it will be considered for debate in Parliament — a key step towards turning this proposal into real policy change.
Status Update:
We are currently waiting 10 days for the government’s response, as the petition has passed the 10,000 mark. Public support is growing fast, and campaigners are urging more people to sign and share the petition.
Every signature counts in showing public demand for fairer taxation and better support for working families.
Petition Created By: Shannon Keene
Petition Deadline: 28 February 2026
FAQs:
1. What is the current personal tax-free allowance in the UK?
As of now, the personal tax-free allowance is £12,570. Any income above this is taxed based on the UK tax bands.
2. What would happen if it increased to £20,000?
Workers would pay no income tax on the first £20,000 they earn, giving them more take-home pay and financial breathing room.
3. Who would benefit most from this change?
Low and middle-income earners, especially parents and part-time workers, would benefit the most as they currently face high tax burdens.
4. How would this help parents returning to work?
Many parents avoid working due to high childcare costs. Keeping more of their income could make work financially worthwhile again.
5. Would this increase government spending?
In the short term, it may reduce tax revenue, but over time it could boost the economy by increasing employment and spending power.
