Raise the 40% Income Tax Threshold – It’s Time Our Tax System Reflected the Cost of Living
The Issue
The UK’s higher-rate Income Tax threshold no longer reflects what it means to be a higher earner.
For years, the threshold has remained largely frozen while inflation has risen sharply. As wages have increased to partially keep pace with the cost of living, more and more ordinary working people are being pushed into paying the 40% rate of tax through fiscal drag.
Today, a salary of around £50,000 is often no longer enough to provide the financial security it once did. Housing costs, childcare, energy bills, food, transport and other everyday essentials have all become significantly more expensive. Many people earning around this level are not living luxurious lifestyles—they are simply trying to support themselves and their families.
The current system also discourages people from taking on overtime, accepting promotions or working a second job. When every extra pound earned above the higher-rate threshold is taxed at 40%, many people question whether the additional work is worthwhile.
I know this feeling personally. Despite working in a well-paid job, I have had to consider taking on a second job because my child receives only £28.60 per month in child maintenance from her father. Like many parents, I am trying to bridge a gap created by rising living costs. While I understand that tax is essential to fund public services, the current threshold means that much of any additional income I earn would be taxed at the higher rate, making it much harder to improve my family’s financial situation.
This is not just about me. Thousands of hardworking people across the UK are finding themselves in similar positions. The definition of a “higher-rate taxpayer” has failed to keep pace with the reality of modern living costs.
We are calling on the Government to:
Increase the threshold at which the 40% rate of Income Tax begins.
Introduce a mechanism to increase the threshold in line with inflation or average earnings each year.
Ensure that people who work hard, seek promotion or take on additional work are not unfairly penalised by outdated tax thresholds.
The tax system should evolve with the economy. It should encourage work, reward ambition and reflect the true cost of living.
If you believe the higher-rate tax threshold should better reflect today’s economic reality, please sign this petition and share it with others.
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The Issue
The UK’s higher-rate Income Tax threshold no longer reflects what it means to be a higher earner.
For years, the threshold has remained largely frozen while inflation has risen sharply. As wages have increased to partially keep pace with the cost of living, more and more ordinary working people are being pushed into paying the 40% rate of tax through fiscal drag.
Today, a salary of around £50,000 is often no longer enough to provide the financial security it once did. Housing costs, childcare, energy bills, food, transport and other everyday essentials have all become significantly more expensive. Many people earning around this level are not living luxurious lifestyles—they are simply trying to support themselves and their families.
The current system also discourages people from taking on overtime, accepting promotions or working a second job. When every extra pound earned above the higher-rate threshold is taxed at 40%, many people question whether the additional work is worthwhile.
I know this feeling personally. Despite working in a well-paid job, I have had to consider taking on a second job because my child receives only £28.60 per month in child maintenance from her father. Like many parents, I am trying to bridge a gap created by rising living costs. While I understand that tax is essential to fund public services, the current threshold means that much of any additional income I earn would be taxed at the higher rate, making it much harder to improve my family’s financial situation.
This is not just about me. Thousands of hardworking people across the UK are finding themselves in similar positions. The definition of a “higher-rate taxpayer” has failed to keep pace with the reality of modern living costs.
We are calling on the Government to:
Increase the threshold at which the 40% rate of Income Tax begins.
Introduce a mechanism to increase the threshold in line with inflation or average earnings each year.
Ensure that people who work hard, seek promotion or take on additional work are not unfairly penalised by outdated tax thresholds.
The tax system should evolve with the economy. It should encourage work, reward ambition and reflect the true cost of living.
If you believe the higher-rate tax threshold should better reflect today’s economic reality, please sign this petition and share it with others.
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Petition created on 1 July 2026