5% VAT This Summer: Who Gets It, What Counts, and What Does Not

You may have seen the government talking about a new summer VAT cut for families. It is being called part of the Great British Summer Savings scheme, and the idea is simple enough: get people out and about, spending money in the UK, and give families a bit of help during the school holidays.

It also comes at a time when hospitality, leisure, and family attractions are still under significant pressure.

So the obvious question is:

Is this basically Eat Out to Help Out, but for 2026?

The answer is: sort of, but not really.

What is actually changing?

From 25 June 2026 to 1 September 2026, some family and children-focused sales can be charged at 5% VAT instead of 20% VAT.

This can include:

• certain children’s meals eaten in at restaurants, cafés and similar places

• children’s tickets for cinemas, theatres, concerts, exhibitions and shows

• family tickets that include at least one child

• admission to certain family attractions, such as theme parks, zoos, aquariums, soft play centres, museums, circuses and similar venues

That sounds nice and simple.

But, because this is VAT, there are rules.

And then there are rules about the rules.

Is it the same as Eat Out to Help Out?

Not quite.

Eat Out to Help Out was the Covid-era scheme in which customers got money off their bills when eating out at participating restaurants. It was very obvious to customers, as they saw the discount right then and there.

This new scheme is different.

It is not a discount voucher.

It is not 50% off your bill.

It is not a blanket VAT cut for every café, restaurant, pub or attraction.

It is a temporary VAT reduction on specific family-friendly things.

So, in very simple terms:

Eat Out to Help Out was a discount at the till.

This is a behind-the-scenes VAT cut.

That means customers may only really notice it if businesses pass the saving on through lower prices, offers, or clear marketing.

Why is the government doing it?

The aim seems pretty clear.

The government wants families spending money in the UK over the summer holidays.

That could mean meals out, cinema trips, theatre visits, soft play, zoos, theme parks, museums, aquariums and other family days out.

It is also a way of offering some support to businesses that rely heavily on summer footfall.

For some family-focused businesses, that could be useful.

A lower VAT rate may give businesses room to:

• reduce prices for customers

• create summer offers

• protect margins

• encourage more bookings

• make family days out feel a bit more affordable

But it is not going to help every business equally.

Will it help hospitality?

A bit, yes. But probably not in the same headline-grabbing way as Eat Out to Help Out. For hospitality businesses, the VAT cut is mainly about children’s meals eaten on the premises.

So if a café, restaurant or pub has a proper children’s menu, some of those meals may qualify for the 5% VAT rate during the summer period.

But adult meals are not suddenly 5% VAT.

Takeaway food is not automatically included.

A smaller version of an adult meal does not automatically count as a children’s meal.

A shared family platter does not automatically count either.

The key point is that the meal needs to be marketed, priced and presented as a children’s meal. So yes, it may help hospitality businesses that are already family-friendly. But it is not a general hospitality VAT cut.

Who is this most useful for?

This is likely to be most useful for businesses that already serve families with children.

For example:

• cafés with children’s menus

• restaurants offering kids’ meals

• soft play centres

• cinemas

• theatres and show venues

• zoos and aquariums

• theme parks and amusement parks

• museums and family attractions

• indoor activity venues

• venues selling family tickets

If your business is aimed at families, this is worth looking at properly.

If your business is not really family or child-focused, it may not make much difference.

The bit businesses need to be careful with

Please do not just change everything to 5% VAT.

That is where mistakes happen.

The reduced VAT rate only applies to specific things. Other sales may still be 20%, exempt, zero-rated, or treated in the normal way.

For example, a family attraction might be able to charge 5% VAT on admission tickets, but food, drinks, gift shop items, upgrades and extras sold separately may still follow their usual VAT treatment.

A restaurant might be able to charge 5% VAT on a qualifying children’s meal, but not on the adult meals sitting on the same bill.

This means businesses need to check:

• what they sell

• how it is described

• how it is priced

• how it appears on menus or booking pages

• how the till or booking system records it

• what VAT code is being used

The way something is marketed and presented really matters.

The idiot-proof version

Here is the simple test.

Ask yourself:

Is this aimed at children or families?

Is it being sold clearly as a children’s meal, child ticket, family ticket or qualifying attraction admission?

Is it for the period 25 June 2026 to 1 September 2026?

If the answer is yes, it might qualify for 5% VAT.

If the answer is no, it probably stays under the normal VAT rules.

And if the answer is “I’m not sure”, check before changing anything.

So, will it work?

It could help.

It gives family-focused businesses a summer opportunity. It also gives customers a reason to book days out, meals out and activities during the school holidays.

But it will only really work if businesses understand it and use it properly.

The main message is this:

This is not a free-for-all VAT cut. It is a temporary 5% VAT rate for certain children’s meals, children’s tickets and family attractions.

If your business sells to families, now is the time to check whether it applies to you.