VAT update • HM Treasury

Great British Summer Savings 2026

From 25 June to 1 September 2026, the Government is introducing a temporary reduced rate of VAT on children's menu meals in restaurants and family leisure activities over the summer period, cutting VAT from 20% to 5%.

HM Treasury • Published 21 May 2026

This will help families afford life's little treats and make memories — from a meal out to a visit to a theme park or the cinema — at a time when rising costs are putting pressure on household budgets. Free bus travel for children aged 5–15 in England in August will further support families to get out and about this summer.

The Government will work with eligible businesses to get the scheme up and running. This initiative supports action already taken to reduce the cost of living, including cutting energy bills, freezing prescription charges, protecting motorists from fuel duty increases and raising the minimum wage.

Cutting the cost of summer activities for families

From 25 June to 1 September 2026, the reduced 5% rate of VAT will apply to eligible services including:

The reduced rate applies in England, Wales, Scotland and Northern Ireland. The period begins with the start of the Scottish school summer holidays and extends across the full UK school summer holiday period.

If a business passes through the full benefit, a family of two adults and two children could save:
£20 off theme park tickets
£2 off entry to soft play
£6 off a farm attraction
£17 off a wildlife park
£1.50 off children's cinema tickets
£9 off circus tickets
£2 off children's meals on a lunch out
£11 off aquarium tickets

Supporting families to get out and about this summer

Throughout August, all children aged 5 to 15 in England will be able to travel free on any local bus service. This will help more families access summer activities while reducing pressure on household budgets. London already operates its own 5–15-year-old Zip Card scheme, which provides children with free travel across London.

Targeted support without undermining public finances

The VAT relief is temporary — running over the summer months only — and targeted at UK families. It is designed to support families by making family days out more affordable, while also supporting businesses through increased footfall. This builds on action already taken to cut energy bills, protect motorists from fuel duty increases, and crack down on unfair price gouging.

Final costings will be confirmed at the next fiscal event following certification from the Office for Budget Responsibility.

How will businesses pass this on to families?

The Government expects qualifying businesses to pass these savings on to families by lowering the prices people pay on eligible children's meals and tickets, so the VAT cut is reflected directly at the till. Passing on the full saving can help businesses attract more customers over the summer, increasing footfall and supporting local economies.

The Government recognises businesses are facing cost pressures, which is why it is also supporting them through measures including a £4.3bn package to limit business rates bill rises and action to cut energy costs for intensive industries.

How the reduced rate works in practice

Eligible activities

Children's meals for consumption on the premises are eligible where served from a dedicated children's menu and marketed, presented and priced as such. For cinemas, theatres, exhibitions, concerts and shows, the reduced rate applies to children's and family tickets only.

The reduced rate applies to admission tickets, including for adults, at:

Sports facilities are not included. Certain sports supplies are already exempt from VAT, such as when they are provided by eligible non-profit bodies (for example, swimming at a community swimming pool).

Season tickets and advance purchases

If a ticket permits repeat entries outside the dates 25 June to 1 September, such as a season ticket, it will not qualify for the relief unless it is priced the same as a standard single-entry ticket. Repeat entry tickets solely for use within the relief period will qualify.

Businesses will be able to apply the 5% rate of VAT on eligible sales for admission between 25 June and 1 September. For sales made before the legislation is in place, including before the announcement, businesses may opt to apply the reduced rate or refund the VAT saving.

Need help applying the reduced rate? If you run an eligible business and want to be sure you are applying the temporary 5% rate correctly, Hilary Allan & Co can advise on eligibility, pricing and HMRC compliance.

Source: HM Treasury news story, "Great British Summer Savings 2026", published 21 May 2026. This page is a summary provided for information only and does not constitute VAT advice.

← Back to home