Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of increasing the personal allowance for income tax in the context of the rising cost of living.

The Government has increased the Income Tax Personal Allowance (PA) by over 40 per cent in real terms since 2010. The PA’s current level, of £12,570 in 2022-23, is £3,805 higher than it would have been if it had been uprated by inflation every year since 2010-11. The PA is high by international standards and is one of the most generous personal tax allowances in the OECD.

However, the Government keeps all taxes under review.

On cost of living support, the Government has taken immediate action to help households through the Energy Price Guarantee and the Energy Bills Support Scheme. This is in addition to the £37 billion of targeted support for the cost of living this financial year.