Published 2 days ago • loading... • Updated 17 hours ago
Calls grow to increase £12,570 HMRC Personal Allowance as inflation rates rise again
The campaign says the freeze has lifted the allowance by about £4,920 less than inflation would have, as CPI rose to 3.1% in August, the ONS said.
A petition created by Kenneth Carmichael is gathering support to unfreeze the £12,570 Personal Allowance, calling for Income Tax thresholds to rise automatically in line with inflation or wages.
The Government has frozen core income tax thresholds until April 2031, which the petition argues is a 'stealth tax' that could "pull millions more people into poverty by 2031" as wages rise.
Campaigners estimate the Personal Allowance would be roughly £17,490 if it had risen with inflation, a difference of around £4,920, while the Office for National Statistics reported Consumer Prices Index inflation increased to 3.1% in August.
The petition, published May 6, 2026, requires 10,000 signatures for a Government response and 100,000 for a Parliament debate, with the campaign closing on November 6, 2026.
While the petition warns of poverty, these figures represent campaign claims rather than an established Government forecast, as economists suggest the Bank may maintain interest rates at 3.75% despite rising inflation.