VAT on children’s meals to be slashed to 5% over summer

The government has announced that VAT on children’s meals will be temporarily cut from 20% to 5% from June to September this year.

The initiative is part of the government’s Great Summer Savings Scheme and is intended to make certain activities and services more affordable for families over the summer holidays.

The temporary reduced rate of VAT will cover restaurants and cafes across the UK, as well as tickets to cinemas, theatres, sporting activities, museums and other specific attractions. Chancellor Rachel Reeves has also announced free bus journeys for under-16s in England in August.

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Families will be able to take advantage of the cheaper rates between 25 June and 1 September, with the start date coinciding with the Scottish school holidays, and ending with the start of the new term at schools in England, Wales and Northern Ireland.

Keir Starmer says the scheme is designed to help families still feeling the affects of the cost of living crisis, stating: ‘When I think about the summer holidays, I think about the Lake District - where I went as a child and later made memories with my own family.

‘I know how precious that time is, yet too many parents feel they have to hold back because the cost of living is still squeezing budgets.

‘This summer we’re cutting the cost of a day out together - free bus travel for children aged five to 15 in England, and VAT slashed on a wide range of kid’s attractions - so families can afford more time together.’

kids eating at the table
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Reeves also commented: ‘Whether it is a fun day out, a family meal or taking advantage of the thousands of amazing attractions across the UK, Great British Summer Savings will support families with the little treats in life while boosting business across the UK.’

The cuts are expected to cost the government £300 million. Kate Nicholls, chair of UKHospitality, highlighted the importance of lowering VAT for businesses, stating that ‘VAT is the single biggest lever it can pull to lower prices, tackle inflation, drive demand, boost spending, generate growth and create new jobs.'

She also said: ‘It’s good to see the government recognise the importance of a lower rate of VAT for hospitality as the quickest and simplest way to lower prices and boost consumer confidence.’

What is the criteria for the reduced rate children’s meals?

The VAT cuts apply to meals that meet the following criteria:

Meals on children’s menus that are clearly marketed, presented and priced as for children
Meals must be consumed on the premises of the restaurant

The reduced rates do not apply to meals marketed as smaller portions, lower-calorie options, discounted versions of adult meals, or shared meals intended for both adults and children. Takeaway meals also do not qualify.