More than 32,300 people have signed an online petition calling for the UK Government to unfreeze the income tax threshold.
Income tax rises for Scots in April – how the changes affect you
The UK Government has rejected calls in an online petition to increase the Personal Allowance tax threshold from £12,570 to £20,000. More than 32,300 people have signed in support of the proposal put forward by campaigner Shannon Keene who argues that raising the income tax limit would “help with increasing rent, mortgages, Council Tax, and gas and electric bills”.
However, in a written response on November 17, HM Treasury explained how the UK Government is “committed to keeping taxes for working people as low as possible while ensuring fiscal responsibility” and therefore will “not increase the Personal Allowance to £20,000”.
The Treasury added that increasing the Personal Allowance to £20,000 would “come at a significant fiscal cost of more than £50 billion per annum”.
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The response continued: “This would reduce tax receipts substantially, decreasing funds available for the UK’s hospitals, schools, and other essential public services that we all rely on.
“A £50 billion cut in public services is equivalent to slashing roughly a quarter of the NHS Budget, or around 80 per cent of defence spending.
“To support the lowest paid workers in our economy, the Government asked the Low Pay Commission to account for the cost of living when making their recommendations on the minimum wage rates to apply from April 2025, for the first time.”
It added that the UK Government is supporting families through increased help for parents with free childcare.
The Treasury added: “The Government keeps all taxes under review as part of the policy making process. The Chancellor (Rachel Reeves) will announce any changes to the tax system at the Budget on the 26th November in the usual way.”
At 100,000 signatures of support, the proposal to increase the Personal Allowance to £20,000 would be considered by the Petitions Committee for debate in Parliament.
You can read the full petition and response on the Petitions Parliament website.
It’s important to be aware there are different tax banding rates in Scotland and England. The Scottish Government now has six tax bands while there are four south of the border.
Scottish tax bands 2025/26
- Personal Allowance (0%)- up to £12,570
- Starter rate (19%) – £12,571 to £15,397
- Basic rate (20%) – £14,877 to £27,491
- Intermediate rate (21%) – £26,562 to £43,662
- Higher rate (42%) – £43,663 to £75,000
- Advanced rate (45%) – £75,001 to £125,140
- Top rate (48%) – over £125,140
Tax thresholds in England and Wales 2025/26
- Personal Allowance (0%) – up to £12,570
- Basic Rate (20%) – £12,571 to £50,270
- Higher Rate (40%) – £50,271 to £125,140
- Additional Rate (45%) – over £125,140
