The personal tax allowance for 2026/27 is £12,570. That figure is confirmed by official government documentation covering income tax rates from 6 April 2026 to 5 April 2028.
Under current legislation, the allowance remains fixed at £12,570 for the 2027/28 tax year as well. The basic rate limit is £37,700, and the higher-rate threshold stays at £50,270 through 5 April 2028.
The income you can earn each year before paying UK Income Tax. It is £12,570 for 2025/26.
£12,570 — unchanged. The allowance is frozen until April 2028.
You lose £1 of allowance for every £2 over £100,000; no personal allowance above £125,140.
Marriage Allowance lets you transfer £1,260 of allowance to your spouse or civil partner, saving up to £252/year.
Here are the key points to understand about the current situation:
- The Personal Allowance has been frozen at £12,570 since April 2021 and is scheduled to stay frozen until April 2028.
- Frozen thresholds mean fiscal drag — rising wages push more people into tax and possibly into higher-rate tax bands.
- Earnings above £100,000 create an effective 60% marginal rate band due to the personal allowance taper.
- Marriage Allowance remains one of the best-known unclaimed tax breaks and can be backdated four years.
- Many ‘allowance’ searches (attendance allowance, Universal Credit work allowance, blind person’s allowance) target different, non-tax benefits.
| Rates and thresholds | Value |
|---|---|
| 2023/24 Personal Allowance | £12,570 |
| 2024/25 Personal Allowance | £12,570 |
| 2025/26 Personal Allowance | £12,570 |
| 2026/27 Personal Allowance (frozen) | £12,570 |
| 2027/28 Personal Allowance (frozen) | £12,570 |
| Taper starts | Adjusted net income above £100,000 |
| Allowance reduced to £0 | Income above £125,140 |
Will Labour increase the personal tax allowance?
There is no announced Labour policy to increase the personal tax allowance. The Labour 2024 general election manifesto did not promise to raise the Personal Allowance, and the current Chancellor has kept the freeze inherited from the previous government.
What has the Chancellor said about the freeze?
In October 2024, Chancellor Rachel Reeves confirmed the existing freeze remains, keeping the allowance at £12,570 for 2025/26 to 2027/28. Later budget coverage suggests the freeze has been extended further, with some sources pointing to 2030/31 or at least April 2031.
Is there any proposal to raise it?
Press coverage in 2026 shows debate about raising the allowance, including talk of a move to £15,570. Those reports describe the idea as speculative and unfunded rather than an announced policy. A parliamentary petition on the subject also reflects public pressure, but no legislation has been enacted.
Government documentation keeps the allowance at £12,570 for 2026/27 and 2027/28. Any Labour-linked move to raise it is still reported as a proposal or discussion, not an implemented change.
Is the personal tax allowance £20,000?
No. There is currently no UK personal allowance at that level. The £20,000 figure appears to be a political or campaigning claim rather than a current government policy.
Sources found show only discussion of possible increases, not an enacted rise to £20,000. The actual figures in force remain £12,570 for the coming tax years.
Reported proposals in the press have centred on a lower figure — £15,570 — and even that is presented as an unfunded idea rather than a confirmed change. Anyone seeing a £20,000 figure should treat it as campaign material rather than tax law.
What is Marriage Allowance and who can claim it?
Marriage Allowance lets one spouse or civil partner transfer £1,260 of their Personal Allowance to the other. The transfer is available when the transferring partner does not pay tax or does not pay above the basic rate.
For the 2025/26 tax year, the transfer amount is £1,260, worth up to £252 a year. The standard personal allowance figure is the base for Marriage Allowance eligibility, but no source indicates a new 2026/27 or 2027/28 increase to the allowance itself.
Claims can be backdated for up to four tax years. Official guidance on Marriage Allowance explains the eligibility conditions and how to apply.
What is the Attendance Allowance and how much are the 2026 rates?
Attendance Allowance is a separate benefit for people over state pension age who need help with personal care. It is paid by the DWP and is not linked to the income tax Personal Allowance.
It is paid weekly at two rates: £76.70 at the lower rate and £114.60 at the higher rate, as confirmed on the official Attendance Allowance page.
What is the attendance allowance helpline number?
The attendance allowance helpline is a separate contact point run by the Department for Work and Pensions. Callers use it to start a claim, request a form, or ask questions about an existing claim. It is not connected to HMRC or income tax queries.
What is the Universal Credit work allowance?
Universal Credit has a work allowance — the amount a claimant can earn before their Universal Credit payment is reduced. It is a social security rule, not a tax allowance.
The official Universal Credit guidance confirms payment amounts and disability-related elements, but does not fully detail work allowance figures in the public summary. Rates are set by the DWP and change separately from income tax thresholds.
Does Universal Credit have a single person allowance?
No. Universal Credit is a benefit, not a tax allowance. It has a work allowance that applies to single people or couples depending on whether they have children or limited capability for work. There is no “single person allowance” in the income tax sense.
What is Blind Person’s Allowance?
Blind Person’s Allowance is a separate tax-free addition to the Personal Allowance for people who are registered blind. It was £2,290 in 2024/25 and is claimed through HMRC. It is distinct from the main Personal Allowance and from Universal Credit treatment of registered blind claimants.
Attendance Allowance, Universal Credit work allowance and Blind Person’s Allowance serve different purposes and are often confused with the income tax Personal Allowance. Only the Personal Allowance determines how much income you can earn before paying tax.
When did the personal allowance freeze begin and when will it end?
- April 2021 — Personal Allowance raised to £12,570, then frozen until April 2026.
- November 2022 — Chancellor Jeremy Hunt extends the freeze for a further two years, to April 2028.
- October 2024 — Chancellor Rachel Reeves confirms the existing freeze remains; allowance stays £12,570 for 2025/26 to 2027/28.
- 6 April 2025 — Start of 2025/26 tax year — allowance remains £12,570.
- 6 April 2026 — Start of 2026/27 tax year — allowance remains £12,570.
- 6 April 2028 — Freeze currently scheduled to end; allowance would normally rise with inflation unless amended.
Later budget coverage indicates the freeze may continue beyond April 2028. Several sources point to an extension until at least April 2031.
What is confirmed and what is still unclear?
| Established information | Information that remains unclear |
|---|---|
| The Personal Allowance is £12,570 in tax year 2025/26. | Whether the government will extend or end the freeze at the next Budget. |
| The Personal Allowance remains £12,570 for 2026/27 and 2027/28 under current legislation. | Whether Labour will change income tax thresholds before 2028. |
| The allowance reduces by £1 for every £2 of adjusted net income above £100,000, reaching zero at £125,140. | Any future tax event, such as an Emergency Budget, could alter these figures. |
| Marriage Allowance is available to spouses or civil partners when the transferring spouse does not pay tax or does not pay above basic rate; the transfer amount is £1,260 in 2025/26. | The origin of the ‘£20,000’ figure — there is currently no UK personal allowance at that level. |
Why does the freeze matter beyond the headline rate?
Frozen allowances create fiscal drag. As wages rise, more workers and pensioners cross into income tax or move into higher-rate bands, increasing HMRC revenue without a formal tax rise. The official income tax rates page sets out the current bands, while the official 2026-2028 rates document confirms the numbers through to 5 April 2028.
The £100,000 taper creates an effective marginal rate of around 60% for earners between £100,000 and £125,140. That behavioural impact sits alongside the political debate about whether the freeze should end.
For context on the wider political landscape, Angela Rayner – Career, Family, and Political Journey covers a senior government figure involved in domestic policy discussions, while Nathan Gill – Jailed 10.5 Years for Pro-Russia Bribery is an unrelated political story. Neither article addresses tax policy directly.
Where can I check the figures myself?
GOV.UK states: “Your Personal Allowance is currently frozen until the end of the 2027/28 tax year.”
“Your personal allowance goes down by £1 for every £2 that your adjusted net income is above £100,000.”
GOV.UK
“For the 2025/26 tax year, the Personal Allowance is £12,570.”
MoneyHelper
“Most people can earn £12,570 a year tax-free. This is called the Personal Allowance.”
TaxAid
Independent summaries from PWC’s UK tax summaries and ATT’s 2026/27 tax year updates match the official figures. Rathbones’ explanation of the Autumn Budget 2025 also covers the extended freeze.
What should taxpayers watch next?
The next UK Budget, usually in the autumn, will determine whether the 2028 freeze end date changes. Anyone earning over £100,000 should plan around the allowance taper, for example with pension contributions or salary sacrifice. Marriage Allowance claims can be backdated for up to four tax years, and tax codes for 2026/27 are typically issued after January 2026.
Frequently asked questions
What is Blind Person’s Allowance?
It is a separate tax-free addition to the Personal Allowance for people who are registered blind. It was £2,290 in 2024/25 and is claimed through HMRC.
What is subsistence allowance?
In most contexts this refers to tax-free subsistence payments for away-from-home expenses for employees. It is separate from the Personal Allowance.
How do I claim Employment Allowance?
Employment Allowance is a National Insurance relief for employers, not an income tax allowance. Employers claim it through their payroll software by selecting the Employment Allowance flag.
Does Universal Credit have a single person allowance?
No. Universal Credit is a social security benefit, not a tax allowance. It has a work allowance — the amount a claimant can earn before their Universal Credit payment is reduced. This affects single people or couples depending on whether they have children or limited capability for work.
Is there an Australian ‘Centrelink’ allowance relevant to UK taxpayers?
No. Centrelink Youth Allowance is an Australian income-support payment for students and apprentices. It has no link to UK Personal Allowance and would only matter to a UK resident with Australian income.
Eleanor Reeves is Managing Editor at readingwire.co.uk, running the daily news list, the publishing schedule and newsroom workflow.