A million more Britons 'being caught in the taxman's net by stealth' amid confusion over whether or not Andy Burnham will unfreeze threshold

By MARTIN BECKFORD, POLICY EDITOR Published: 19:00, 22 July 2026 | Updated: 19:12, 22 July 2026 A million more people will be hit by a stealth tax on their earnings, it is claimed, amid confusion over whether Andy Burnham will tackle it or not. New analysis has found that half a million workers will have to pay the basic rate of income tax for the first time this year as their pay crosses the long-frozen £12,750 threshold. Another 410,000 will be dragged into the higher rate band in 2026-27 while 70,000 will have to pay the top rate, according to the TaxPayers' Alliance. On average, taxpayers will pay £1,040 more in income tax in the current financial year than they did before the election in 2023-24. Overall total income tax liability for the current financial year is estimated to be £347billion, up £43bn since Labour came to power. John O'Connell, chief executive of the campaign group said: 'A million more Brits are being caught in the taxman's net by stealth. 'Freezing thresholds lets ministers rake in billions without admitting they have raised taxes, hitting workers, pensioners and families across the country. 'If Andy Burnham really wants to give hard-working taxpayers breathing space, he should end fiscal drag and unfreeze tax thresholds.' More and more Britons are having to pay income tax as the threshold remains frozen However it is unclear if the new Prime Minister will increase the personal allowance, which has already been frozen for the past five years and which is currently due to remain in place until 2031, after appearing to change his mind twice. In an interview on Sunday he said 'frustration about the personal allowance' was one of the most common complaints he heard from voters while campaigning ahead of the Makerfield by-election last month, raising hopes he would end the freeze. Then on Tuesday his allies insisted the Financial Times there was 'not any commitment' to increase the threshold, which experts claimed could cost up to £9bn a year if it is made permanent. But on Wednesday Mr Burnham suggested it would indeed be looked – but not until the autumn Budget. Asked by broadcasters if he planned to change the income tax allowance, he replied: 'Well, it's funny these days you can't answer a question honestly without then people reading everything else into it.' He added: 'There is no commitment at this point to change, but we will look at that at the budget.' Shadow Chancellor Sir Mel Stride said: 'Keir Starmer and Rachel Reeves hiked taxes to pay for more welfare. Andy Burnham has no plan for Government, so he is rapidly heading towards doing the same. 'His announcements so far just don't add up. He's not taking the hard choices because Labour MPs won't get on top of welfare spending. That means borrowing will increase and taxes will rise.'