Overview of the Policy
From 25 June 2026, across England, Wales, Scotland, and Northern Ireland, the government has reduced VAT from 20% to 5% on children’s meals (when consumed in-restaurant), admission tickets for cinemas, theatres, family attractions, soft play, zoos, etc. The scheme — named Great British Summer Savings — runs through the summer holidays and is designed to help families facing high costs and support the leisure and hospitality sector. (gov.uk)
Who Benefits and How
| Beneficiaries | What They Pay Less For or Receive |
|---|---|
| Families / Households | • Children’s meals eaten in-restaurant <br>• Tickets for shows, museums, cinemas, attractions <br>• Eligible admissions for adults accompanying children |
| Businesses in the leisure & food sector | • Can pass on VAT savings to customers <br>• Increased summer footfall opportunity <br>• Need to adjust pricing & accounting systems to reflect new VAT rate |
Compliance & Implementation for Businesses
- Register participation: Businesses that are VAT-registered and supply eligible items must opt in or comply as per HMRC guidance.<br> - Update point-of-sale systems: Ensure till systems correctly apply 5% VAT on eligible goods and 20% on others simultaneously.<br> - Training staff to distinguish what qualifies (e.g. what counts as a ‘children’s meal’, which attractions are eligible).<br> - Communicate clearly: Signage, menus, websites should reflect new prices so customers know the VAT benefit.
Practical Tips for Families
- Plan day trips/activities during the scheme (summer holidays) to maximise savings.<br> - Check whether attractions/restaurants are participating.<br> - Keep receipts, especially if your business or per diem claims may rely on showing VAT charges.
Example Scenario
‘The Family’ plans a trip: a cinema visit costs £20 per adult ticket, child’s ticket £12, and children’s meal £8.<br> Under the scheme:<br> - Child’s ticket VAT portion drops from 20% to 5%, saving £1.20–£1.50 per ticket.<br> - Meal cost drops similarly (£0.75 saving).<br> - Over multiple items, the savings accumulate for families and reduce pressure during summer.
Cautions & What to Expect Next
- This is temporary: businesses should track when the scheme ends and prepare to revert to standard VAT rules.<br> - Some supply chain or software constraints might delay businesses passing on the full benefit.<br> - Be alert for government announcements extending or modifying the scheme if inflation or cost-of-living pressures persist.
How This Fits into Broader Tax & Social Policy
This measure complements other recently announced tax updates focused on simplification, fairness, and cost-of-living relief (such as adjustments to scales for overseas travel, or plans for more timely payments under Self Assessment). It reflects a government pivot towards more visible, household-level reliefs. Expect more time-limited VAT or tax measures aimed at easing living costs in response to public pressure and inflation.