Andy Burnham assumed his role as prime minister on Monday and one of his top priorities is tackling the cost of living crisis. While that's not yet a confirmed policy, it's clearly one of the options on the table after the new prime minister also removed VAT from household electricity bills. Ultimately, until the new prime minister provides more details of his plan it's a guessing game to an extent. For this example, that means using September 2025 data, when CPI inflation was 3.8 per cent. That would uplift the personal allowance from £12,570 by £477.66, rounded to £480, so giving a new figure of £13,050.