UK Prime Minister Andy Burnham urged to raise frozen personal tax allowance

Prime Minister Andy Burnham is facing pressure to lift the personal tax allowance that has been frozen at £12,570 since 2021. A pensioner and tax expert Jonathan Cribb of the Institute for Fiscal Studies suggested raising it to £15,000, outlining two long‑term options: increase the threshold for all workers or limit the rise to state pensioners. Cribb warned that without action “millions of people could be forced to complete self‑assessment tax returns.”

Burnham told BBC Radio 4’s Moneybox that there is “no commitment at this point to change, but we will look at that at the Budget.” The issue was highlighted as the most frequent concern raised by voters on his campaign trail in Makerfield. HMRC data show 31.4 million basic‑rate taxpayers, a 15 % rise since the thresholds were frozen, meaning more low‑earning workers are now paying the 20 % income‑tax rate.

If the allowance is raised, it would ease the tax burden on pensioners and low‑income earners, while keeping the current policy would maintain pressure on millions of households.