Tax Allowance Debate Gains Momentum as Potential £3,000 Boost for Workers Emerges

New proposals could raise personal allowance to £15,570, offering £3,000 tax relief and easing pensioner burdens.

September 23, 2026 One Min Read

POLICY WIRE — London, United Kingdom — A growing discussion is underway about the potential increase in the UK’s personal income tax allowance, which could bring significant financial relief to millions of workers and retirees.

Recent reports suggest that the personal allowance, currently set at £12,570, may see its first rise in five years, with some proposals pushing it up to £15,570 ahead of the October Budget. If implemented, this change could provide a £3,000 tax break for many individuals, according to sources close to Labour figures like Andy Burnham and Chancellor John Healey.

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Amidst these developments, Reform UK leader Robert Jenrick has pledged to raise the tax-free threshold to £15,000 within 100 days of his party winning the next general election. Meanwhile, a petition calling for an increase in the personal allowance has gained traction, with supporters arguing that the change would alleviate financial pressure on low- and middle-income earners.

Reporting by Policy-Wire (PW)

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