The Chancellor, John Healey, is not expected to make major changes to income tax thresholds in today's Budget, The Telegraph reports. That would leave the freeze in place until 2031.
The paper describes the effect of frozen thresholds as a 'stealth raid' of fiscal drag. As wages rise, more income is pulled into tax or into higher bands.
According to The Telegraph, the personal allowance has been frozen at £12,570 since 2022. Rachel Reeves's November 2025 Budget extended the freeze on the personal allowance and the income tax thresholds until 2031.
The report sits against calls from the union Unite to end the freeze.
The Telegraph also says experts warn that the £13,036 pensioner allowance risks a 'cliff-edge' for some pensioners on modest incomes, who would end up worse off. The report gives no figure for how many people could be affected.
This is a report of what Healey is expected to do. The Treasury has not confirmed it, and it will only be settled when the Chancellor delivers his statement to the Commons.