Families across the UK will benefit from a welcome boost this summer as the Government introduces a temporary reduction in VAT on children’s menu meals and family leisure activities.
From 25 June 2026 until 1 September 2026, the VAT rate on qualifying children’s meals served in restaurants and selected family leisure activities will be reduced from 20% to 5%, helping families enjoy more affordable days out during the school holidays.
What Is Changing?
As part of a temporary summer support measure, the Government is cutting VAT on:
- Children’s menu meals served in restaurants, cafés and participating food establishments.
- Eligible family leisure activities and attractions.
The reduced rate will apply between 25 June 2026 and 1 September 2026, after which VAT is expected to return to the standard rate of 20%.
What Does This Mean for Families?
The VAT reduction is designed to help families manage the additional costs that often arise during the summer holidays.
By lowering VAT from 20% to 5%, businesses may be able to pass on savings to customers through reduced prices on children’s meals and family activities, making it more affordable to enjoy meals out and family experiences throughout the summer.
For example:
- Eating out with children could become noticeably cheaper.
- Family attractions and leisure activities may offer lower prices during the promotional period.
- Families may find it easier to plan more days out during the school holidays without stretching their budgets.
What Does This Mean for Businesses?
Restaurants, cafés, leisure venues and family attractions should review how the temporary VAT reduction affects their pricing, accounting systems and customer communications.
Businesses will need to ensure that:
- Eligible supplies are correctly charged at the reduced 5% VAT rate during the qualifying period.
- Point-of-sale and accounting systems are updated accordingly.
- Staff are aware of the temporary changes and can answer customer questions.
- Marketing materials accurately reflect any savings being passed on to customers.
A Welcome Summer Boost
The summer holidays can be one of the most expensive times of the year for families. This temporary VAT reduction aims to provide financial relief while encouraging families to enjoy local restaurants, attractions and leisure activities.
Whether you’re planning family meals out, visiting attractions, or looking for affordable ways to keep children entertained during the holidays, the reduced VAT rate could help your budget go a little further this summer.
Key Dates at a Glance
Reduced VAT Period: 25 June 2026 – 1 September 2026
Standard VAT Rate: 20%
Temporary Reduced Rate: 5%
If you are a business affected by these changes and would like guidance on VAT compliance, pricing updates or accounting requirements, contact our team for professional advice.