UK cuts VAT on family attractions for summer holidays

Families heading into the school holidays got a temporary VAT cut on children’s meals and admissions to family attractions, with the rate dropping from 20% to 5% across the UK from 25 June 2026 to 1 September 2026. The order came into force on 25 June, and Rachel Reeves announced the change in a ministerial statement on 21 May as part of the government’s Great British Summer Savings push.

The household math is straightforward, but only if operators pass the cut through in full. A family attraction or meal priced with VAT built in at the old 20% rate would fall by about 12.5% at the till under the new 5% rate, so a £40 ticket bundle would drop to roughly £35 and a £20 children’s meal to about £17.50. The relief covers children’s meals for consumption on the premises, plus admissions to family attractions, theatres, cinemas, concerts, exhibitions and shows. It does not extend to accommodation, leaving one of the biggest costs of a family break outside the measure.

The timing was designed to catch the start of summer demand. HM Revenue & Customs said the temporary relief was intended to reduce the cost of leisure and hospitality activities for families during the summer holidays, and the explanatory memorandum for the order said it targets children’s meals and specified admissions to help with school-break spending. In parts of England, local authority school calendars show pupils breaking up around 21 July, which means the cut is in place before the main holiday rush, not after it.

Some operators moved quickly to show how they would handle the change. Merlin Entertainments said it would apply the VAT cut to both admission tickets and children’s meals across its UK attractions, saying it hoped to welcome more families to its theme parks and immersive experiences over the summer. For families comparing a day out, that makes the best-case saving visible on the ticket and the lunch receipt, while hotel bills and other overnight costs remain untouched.