Income Tax: Personal Allowance

Tom Morrison Excerpts

Monday 12th May 2025 Westminster Hall

[Mr Tom Morrison (Cheadle) (LD)]

It is an honour to serve under your chairship, Mr Stuart. One in five people in the UK is now living in poverty. That is around 14 million people. Those are people in our communities: we see them at the school gates, we go to church with them and we meet them every day in our constituencies. Those people are struggling to navigate ever-increasing energy bills, rising food prices and other costs, while their wages do not keep up with inflation.

Last year, I was door-knocking in Gatley village, which sits in my constituency. It was one of those incredibly cold nights—the kind of cold that really bites through people’s fingertips. I came to one house where the lights were off. I was not expecting an answer, but a woman answered the door layered up in two dressing gowns, and with two small boys behind her. We talked briefly about the issues she was facing: rising energy prices, increases in her mortgage and the struggle to keep her boys fed and warm. However, what really stood out to me was the look in her eye, because it was the same look that my mum had when I was growing up.

When I was about 13, my mum, brother and I faced homelessness after our landlord hiked up the rent. My mum did everything to protect my brother and me from what was happening, and it is only now that I realise what she went through. She missed meals so her boys could eat. She would sometimes sit in the dark alone when the electricity meter ran out of credit and we had gone to bed. That was the day-to-day life that we were living. Many years later, seeing those two boys standing behind their mother in a freezing cold house reminded me how important it is to keep standing up for those people who are struggling day by day.

I thank Mr Frost for bringing this issue to the House. I believe that raising the personal income allowance could ease the burden that many people are facing, although it has to be when the finances allow. However, whether the Government listen to the signatories of the petition or not, more must be done to help those who are struggling.

The Conservatives effectively raised taxes by freezing the income thresholds for several years. Families and pensioners should not have to pay to clear up the economic mess left by the previous Government. This Government must find ways to lower the tax burden, so that more people are not dragged into poverty and so that more families can live in dignity and security.

According to Resolve Poverty, which was formerly known as Greater Manchester Poverty Action, nearly 20% of children in Cheadle live in poverty, while across Stockport the figure is over 30%. Make no mistake—the figure should be 0% everywhere. Raising the personal allowance would help, but if the Government refuse to do that, at the very least they must better support low-income earners who are struggling to afford the basics.

One way that the Government could act is by scrapping the unfair child benefit cap, which is one of the biggest drivers of rising child poverty. Many charities from across the UK, including Child Poverty Action, Citizens Advice and Save the Children, are advocating for the cap to be scrapped. As Dan Paskins, executive director of Save the Children, has said:

“good intentions are not enough. Children growing up in poverty need action and no child poverty strategy will be credible unless the two-child limit is scrapped”.

I finish by reminding the Minister of the story that I shared earlier: that mother, with two young boys standing behind her, doing everything she could to ensure that they were being looked after. No one wants to struggle. No one wants to choose between heating and eating, but it is still happening. In the sixth richest country in the world, that is not acceptable. The Government must do more to help those who are in work but still struggling, and more to provide support for those children being dragged into poverty.