Despite the campaign Ms Reeves extended the tax threshold freeze to 2031 from 2028 meaning more of the poorest workers will be forced to pay tax. Also state pensioners are set to cross the threshold in 2027 due to the triple lock, although the Treasury has said those who only have the new state pension as their income will not pay tax.

The petition on the Parliament website, initiated by Shannon Keene, is calling on the Government to increase this threshold to £20,000, urging Rachel Reeves to: “Raise the income tax personal allowance from £12,570 to £20,000.

“This would help with increasing rent, mortgages, Council tax, and Gas and Electric bills. Some families can’t afford to go back to work after children due to childcare costs wiping their whole income! We think that we are currently paying ridiculous amounts of tax, and that minimum wage isn’t even enough to support an average family.”

“We believe that this would lead to a massive increase on people willing to look for work, instead of people not wanting to, due to it being too expensive to now live.”

The Treasury issued a response last month, stating: “The Government is committed to keeping taxes for working people as low as possible while ensuring fiscal responsibility, so we will not increase the Personal Allowance to £20,000. The Government is committed to keeping taxes for working people as low as possible while investing in public services and not taking risks with the economy.

“The Government currently has no plans to increase the Personal Allowance to £20,000. Increasing the Personal Allowance to £20,000 would come at a significant fiscal cost of more than £50 billion per annum. This would reduce tax receipts substantially, decreasing funds available for the UK’s hospitals, schools, and other essential public services that we all rely on. A £50 billion cut in public services is equivalent to slashing roughly a quarter of the NHS Budget, or around 80% of defence spending.”

The Government is taking alternative measures to support workers and families, having instructed the Low Pay Commission to consider the cost of living when setting minimum wage rates from April 2025 onwards. Additionally, support is being provided through expanded childcare provision, with 15 hours of government-funded childcare available for all parents of 3- and 4 year olds, whilst eligible working parents of children aged 9 months and above can access 30 hours weekly.

“The Government keeps all taxes under review as part of the policy making process. The Chancellor will announce any changes to the tax system at the Budget on the 26th November in the usual way.”

The issue has sparked numerous petitions across the country, reflecting significant public concern. A petition calling for the threshold to be increased to £20,000 amassed 281,792 signatures on the Parliament website earlier this year before closing to new supporters over the summer.

This substantial backing prompted a Parliamentary debate, during which the Treasury estimated the cost at £50 billion. Campaigners pointed to the petition’s status as one of the most-signed in the website’s history as evidence of strong public sentiment on the matter.

At present, earnings above £12,570 are subject to a basic tax rate of 20 per cent, whilst those earning over £50,270 face a higher rate of 40 per cent – both thresholds have been frozen since 2021.

The debate centres on ‘fiscal drag’, a consequence of the personal income tax allowance remaining static at £12,570 since 2021. During a Westminster Hall debate in the House of Commons earlier this year, Liberal Democrat Daisy Cooper highlighted the considerable public support as indicative of national feeling: “The number of people who have signed it speaks to the strength of public feeling about this issue, which is a serious policy challenge for all political parties. Indeed, I think the petition does more than show the strength of feeling that exists.”

The current financial climate has been described as a “I regard it as a cry for help, because right around the country there are struggling families gripped by a cost-of-living crisis. We have a toxic combination that means that people are seeing their taxes go up but not seeing services improve. It is leading to that cry for help.”

James Murray, Exchequer Secretary to the Treasury, has cautioned that increasing the tax threshold to £20,000 would impose a significant financial strain. He stated: “I recognise the views of everyone who has put their name to the petition, and let me be clear that, as a Government, we want taxes on working people and on pensioners, who have worked hard all their lives, to be as low as possible.”

He continued: “We were elected to put more money in people’s pockets and, crucially, we were elected to do so in a fiscally responsible way. That is a critical point to understand.”

Murray emphasised the government’s commitment to maintaining low taxes for workers and pensioners, but warned against reckless fiscal decisions: “We aim to keep taxes on working people and pensioners as low as possible, but if we were to heed the calls of some Opposition parties and abandon fiscal responsibility, it would lead to economic chaos and the collapse of public services, and that would harm working people and pensioners the most.”

He concluded with a stark figure: “Raising the personal allowance to £20,000 would cost more than £50 billion. That is more than the £45 billion of unfunded tax cuts announced by Liz Truss in her disastrous mini-Budget.”

The debate can be viewed here.

To see and back the new petition, click here.