Summer VAT cut: What families will actually save on days out

From Thursday 25 June, families heading to theme parks, zoos, cinemas and restaurants will benefit from a temporary VAT cut — but the savings may be smaller than you’d hope.

The government has reduced VAT from 20% to 5% on family-friendly activities and kids’ meals until 1 September, timed to coincide with the school summer holidays. It’s a bid to ease the pressure on household budgets during an expensive time of year.

What’s included in the VAT cut?

The discount applies to children’s meals in restaurants, kids’ and family tickets for cinemas, theatres, concerts and exhibitions, as well as theme parks, adventure parks, zoos, nature reserves and wildlife parks. Children aged 5–15 in England will also get unlimited free bus travel in August.

How much will you actually save?

Here’s the catch: the Institute for Fiscal Studies estimates the average saving across all UK households will be around £10. If you’re a regular theme park visitor with an annual pass, you may see little benefit. But if you’re planning a one-off family day out, even a modest discount helps.

Will businesses pass on the discount?

That’s up to them. Some major chains — including Wetherspoons, Greene King and Nando’s — have committed to passing savings to customers. However, smaller businesses may struggle with the cost of reprogramming tills and updating menus for what is only a 10-week scheme.

What you should do

If you’re planning summer activities, it’s worth asking venues upfront whether they’re passing on the VAT saving. For regular visitors, annual passes often offer better value than individual ticket discounts. And remember: the government is also freezing prescription charges, rail fares and providing energy bill relief — so look at the broader picture of available support.

For more information about summer support for families, visit the gov.uk website or contact your local authority.