Jump to contentThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged inAllNewsSportCultureLifestyleAndy Burnham has retracted earlier suggestions about increasing the £12,570 tax-free personal allowance as part of his strategy to address the cost of living crisis. The personal allowance has remained frozen since 2021, a policy that results in more individuals paying tax as their earnings rise due to inflation, a phenomenon known as fiscal drag. Burnham had previously told The Times that voter frustration regarding the frozen personal allowance, encountered during his campaigning in the Makerfield by-election, was a significant concern for him. On Monday, he indicated to reporters that while 'all of this will be looked at' in the upcoming budget, he recognised that any alteration would be costly and challenging given the current financial climate. Despite his earlier comments, allies of Mr Burnham have since informed the BBC that adjustments to the personal allowance are not included in his immediate proposals for tackling the cost of living. In fullAndy Burnham latest: PM U-turns on increase to personal tax-free allowanceMore bulletinsThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in

The personal allowance has been frozen for five years, pulling more people into paying tax

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Burnham is attempting to act quickly to deliver on promises to tackle the UK's cost-of-living crisis.

The new PM risks following the unsuccessful path laid by his predecessors - and having to commit to multiple more tax rises to fund it

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The new PM is already under pressure to explain how he will pay for his ambitious plans to remake Britain

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Andy Burnham had made clear twice since entering No10 that he wanted to increase the personal allowance.

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The new Prime Minister has wavered on hints he might raise the personal allowance

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