Petition Nears Critical Threshold, Could Force HMRC to Double Tax Allowance for Pensioners
A public petition is rapidly approaching the 100,000-signature mark, a milestone that could compel HMRC to consider doubling the personal tax-free allowance for state pensioners to over £25,000. The campaign specifically urges the Labour Party government to create a new tax code for retirees, setting the threshold at double the current basic rate.
Details of the Proposed Tax Change
The petition, created by Timothy Hugh Mason with a deadline of April 1, 2026, has already garnered 90,957 signatures. It needs just under 10,000 more to reach the 100,000 required for the proposal to be considered for a debate in Parliament. If implemented, this change would raise the tax-exempt limit for pensioners to £25,140, providing significant financial relief for many retirees.
The petition creator emphasizes that the measure is designed to assist pensioners while maintaining fairness: "We want the government to introduce a new tax code for state pensioners, set at double the basic threshold. If this was implemented, pensioners would receive a higher tax-exempt limit, but wealthier pensioners would still pay tax."
Current Tax Landscape and Expert Analysis
In England, Wales, and Northern Ireland, the current tax thresholds are frozen until 2031. However, in Scotland, thresholds are scheduled to change for the 2026/27 tax year, beginning on April 6, 2026. This regional variation adds complexity to the national discussion on tax policy.
Martin Lewis, the renowned Money Saving Expert founder, provided clear context on how personal allowances function. "The first thing to say is most people get a personal allowance. That is how much money you are allowed to earn each year before you pay any tax on it," he explained. "The typical number is £12,570. So if you earn less than that and that's total earnings from work and from a pension or interest on your savings, if you earn less than that, it isn't taxed. If you earn more than that, some of it is taxed."
Lewis detailed the progressive tax system further:
- Earnings above £12,570 up to £50,270 are taxed at a 20% rate.
- From £50,271 to £100,000, the tax rate increases to 40%.
- Above £100,000, individuals begin to lose their personal allowance, resulting in an effective tax rate of around 60% for earnings between £100,000 and approximately £125,000.
- For earnings over £125,140, the top tax rate of 45% applies.
The proposed doubling of the allowance for pensioners would directly impact the initial threshold, potentially shifting where these higher rates begin to apply for eligible retirees. All petitions of this nature run for a standard period of six months, keeping the issue in public discourse as the signature count climbs.
