The petition, which argues that the personal tax allowance has been frozen at £12,570 since 2021 and that the freeze was extended to 2031 in the November budget, says workers on the minimum wage may soon pay tax due to fiscal drag. It also notes that some higher earners pay little or no tax through accounting rules, calling this "so wrong."
The Office for Budget Responsibility estimates the freeze will raise over £55 billion in 2030/31. According to The Guardian, a full-time minimum wage worker would pay an extra £137 a year by 2030. By 2027, the new state pension may exceed the personal allowance due to the triple lock, potentially increasing tax bills for pensioners.
A previous petition to raise the threshold to £20,000 received 281,792 signatures and prompted a Westminster debate. The Treasury estimated the cost of raising the threshold to £20,000 at £50 billion. It remains unclear what the Treasury's formal response will be or whether the petition will reach 100,000 signatures to trigger a parliamentary debate.