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UK Workers Face £38,000 Tax Trap Until 2030

11/18/2025

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Summary

Story summary

The high-income tax trap in the UK costs workers up to £38,000 due to frozen thresholds.
Between £100,000 and £125,140, people lose 62p per extra pound as the personal allowance is withdrawn.
Childcare benefits cease once earnings exceed £100,000.
Chancellor of the Exchequer Rachel Reeves expects to extend the freeze to 2030, potentially raising £8.3 billion, while thresholds have been frozen since 2010 and 2017.

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Story summary

The high-income tax trap in the UK costs workers up to £38,000 due to frozen thresholds.
Between £100,000 and £125,140, people lose 62p per extra pound as the personal allowance is withdrawn.
Childcare benefits cease once earnings exceed £100,000.
Chancellor of the Exchequer Rachel Reeves expects to extend the freeze to 2030, potentially raising £8.3 billion, while thresholds have been frozen since 2010 and 2017.