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Income-tax thresholds frozen to April 2031, raising taxes

By Drooid · Oct 30, 2026 · How we work

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Summary

Chancellor John Healey freezes income-tax thresholds at the £12,570 personal allowance and £50,271 higher-rate line until April 2031.
The freeze should generate £58 billion annually by 2030-31 and add 6.8 million new taxpayers.
From April 2027, pensioners whose only income is the State Pension (£13,040) will be tax-exempt.
A £25,000 earner loses about £700 this year and £5,900 by 2030 because of the freeze.

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Chancellor John Healey freezes income-tax thresholds at the £12,570 personal allowance and £50,271 higher-rate line until April 2031.
The freeze should generate £58 billion annually by 2030-31 and add 6.8 million new taxpayers.
From April 2027, pensioners whose only income is the State Pension (£13,040) will be tax-exempt.
A £25,000 earner loses about £700 this year and £5,900 by 2030 because of the freeze.