Tax Allowance Boost Under Discussion, Could Save Pensions from Tax

Rumors suggest a potential £3,000 tax boost for workers as personal allowance may rise to £15,570, easing pressure on state pensions.

Editorial Desk

September 23, 2026 One Min Read

POLICY WIRE — London, United Kingdom — A potential increase in the UK’s personal income tax allowance is under discussion, with officials reportedly considering raising the threshold at which individuals begin paying tax.

The proposed change would see the current £12,570 threshold potentially increased to £15,570, marking the first adjustment in five years. If implemented, millions of workers could receive a tax relief worth up to £3,000, according to reports.

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Labour donor Dale Vince has suggested that the move could be funded through changes to capital gains tax and Bank of England interest payments. Meanwhile, a petition calling for the personal allowance to be raised to £18,000 has surpassed 50,000 signatures, increasing pressure on Chancellor John Healey and Prime Minister Andy Burnham to address the issue before the October Budget.

Reporting by Policy-Wire (PW)

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