Overview of the Scheme
The UK government is introducing a temporary reduced VAT rate of 5% (down from the standard 20%) on certain family-friendly services: children’s meals, children’s and family tickets for cinemas, theatres, exhibitions and shows, and admission to eligible attractions. This will run from 25 June 2026 through 1 September 2026. The aim is to reduce cost pressures for households during school holidays. (gov.uk)
Who’s Eligible
Businesses directly making these consumer-facing supplies are in scope—this includes restaurants, cafés, soft plays, amusement parks, museums, zoos, and theatres. It covers both children and in many cases adult tickets, depending on how the attraction is marketed and presented. (gov.uk)
What Businesses Should Do Now
- Check your offerings: Ensure your children’s meals menu is clearly marketed, priced, and presented as intended for children. Don’t bundle them with adult menus in a way that undermines the “children’s meal” qualification.
- Review ticket structure: If offering family packages or tickets, consider how pricing and marketing classify “family attractions” to fall within scope. Separate adult-only packages may be excluded.
- Update POS systems: Ensure your point-of-sale or ticketing software can handle switching between VAT rates. Prepare signage or online notices to show savings being passed on.
- Compliance with timing: This rate is only valid between 25 June and 1 September 2026 (inclusive). Ensure you correctly apply the standard 20% rate before and after that window. (gov.uk)
Tips for Families
- Plan outings: Booking attractions or eating out during the reduced VAT window will save you money—especially for families with young children.
- Check qualifying products: Only “children’s meals”, clearly marketed, are included. An adult’s meal is unlikely to qualify. Same for tickets—look for those aimed at “children” or “family-friendly”.
- Look out for attractions’ marketing: Businesses may advertise the savings—look for noticeboards or online promotions that mention “Great British Summer Savings”. (gov.uk)
Example Scenarios
| Scenario | Without VAT Cut | With VAT Cut | Benefit for Customer / Business |
|---|---|---|---|
| Family of two adults and two children visits a theme park | Assuming £100 total admission (at 20%) | £95 (at 5%) | £5 saved; business reduces the burden for families |
| Restaurant charging £8 for a child’s meal | £8 at 20% VAT | £8 at 5% VAT (if children’s menu qualifies) | Small saving per meal, helps parents dine out more |
Making the Most of It
Be proactive if you’re a business: communicate the savings clearly and ensure your operations comply to avoid disputes. If you're a consumer, plan ahead, check what qualifies, and look out for promotions tied to this VAT relief. Both sides have a chance to make this summer relief count.