New call to increase Personal Allowance to £15,597 to help people boost finances

A fresh online petition,signed by over 4,200 people, is demanding an increase in the personal tax allowance from £12,570 to £15,597. The aim is to "give more people money in their pockets to pay their bills" and reduce reliance on government assistance.

The petition's creator, Andy Hobson, is also calling on the UK Government to raise the higher income tax threshold from £50,271 to £62,379.02.

Earlier this year, the Labour Government announced that the Personal Allowance would remain frozen at £12,570 until April 2028. The proposed income tax thresholds by the campaigner are based on the current thresholds, which have been in place since 2021.

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Mr Hobson argues that "as we pay more for goods, our tax-free allowance stays the same, meaning we're getting poorer." Recent figures from the Office for National Statistics (ONS)reveal that the rate of inflation has now climbed to 3.8 per cent.

The ONS attributes the rise in inflation to a surge in transport costs, particularly airfares, as families jetted off on holiday and a spike in food prices. Food inflation leapt to 4.9 per cent in July from 4.5 per cent in June as supermarkets grappled with global supply chain disruptions and economic uncertainty closer to home, reports the Daily Record.

Core inflation, which excludes more volatile items such as food, alcohol, and tobacco, also increased in the 12 months to July to 3.8 per cent from 3.7 per cent in June. In simple terms, households continue to grapple with the fallout from the cost-of-living crisis.

The 'set the income tax personal allowance to £15,597 and higher rate to £62,379.02' petition has been posted on the Petitions Parliament website.

At 10,000 signatures, it would be entitled to a written response from the UK Government and at 100,000, it would be considered by the Petitions Committee for debate in Parliament.

The petition states: "Set the tax-free allowance at £15,597, calculated via the Bank of England inflation calculator vs 2021 when the current rate was set. The same for the higher rate, currently £50,271 set in 2021, this should be £62,379.02.

"We think this would give more people money in their pockets to pay their bills and rely less on government help. This could also mean more money being spent, so more VAT in the government's pocket too.

"We are currently suffering fiscal drag because of this, and the previous government chose to freeze thresholds, but we think this is a stealth tax. As we pay more for goods, our tax-free allowance stays the same, meaning we're getting poorer."

It's crucial to note that there are different tax banding rates in Scotland and England. England has four tax bands, whilst there are six north of the border.

Scottish tax bands 2025/26:

• Personal Allowance - up to £12,570, 0 per cent
• Starter rate - £12,571 to £15,397, 19 per cent
• Basic rate - £14,877 to £27,491, 20 per cent
• Intermediate rate - £26,562 to £43,662, 21 per cent
• Higher rate - £43,663 to £75,000, 42 per cent
• Advanced rate - £75,001 to £125,140, 45 per cent
• Top rate - over £125,140, 48 per cent

Tax thresholds in England and Wales 2025/26:

• Personal Allowance - up to £12,570, 0 per cent
• Basic Rate - £12,571 to £50,270, 20 per cent
• Higher Rate - £50,271 to £125,140, 40 per cent
• Additional Rate - over £125,140, 45 per cent

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