A temporary cut to VAT on family attractions and children’s meals took effect on Thursday, as schools began breaking up for the summer, but critics have questioned whether the measure will meaningfully ease the cost of living.
From 25 June to 1 September, VAT on ticket prices at theme parks, zoos, museums, cinemas, theatres, concerts, shows and exhibitions, as well as children’s meals in restaurants, will fall from 20% to 5%. The cut coincides with the start of the school holidays in Scotland, followed by Northern Ireland, England and Wales in July.
“Temporary VAT cut from 20% to 5% on attractions and kids' meals begins Thursday, but critics say savings are negligible.”
Chancellor Rachel Reeves told the BBC that as a mother she recognises that summer holidays “could be quite expensive” and are a “juggling act” for parents who must take time off work to keep children entertained. She said the purpose of the temporary reduction was to “help people make those precious memories during the summer holidays, but not having to fork out too much for it”.
But some families remain unconvinced. Alan, 42, from Brighton, who regularly visits theme parks with his family, said he does not expect much from the VAT cut. “These kind of attractions are quite expensive in the first place,” he said, adding that any savings passed on would be “negligible” and would only benefit those who go as a one-off. He said a theme park pass – which his family uses at Legoland, Chessington World of Adventures and Sea Life centres – was a better option. More useful measures, he argued, would be addressing energy and fuel costs. “How the government can say this is going to result in any household saving is a mystery,” he said.
Helen Miller, director of the Institute for Fiscal Studies think tank, previously estimated the cut would lead to an “average saving of around £10 per UK household”.
The government also announced unlimited free bus travel for children in England during August. Reeves said that for families “particularly reliant on the bus, unlimited bus travel for kids is going to be worth more than £10”. She pointed to other government actions including freezing prescription charges, freezing rail fares, and providing energy bill relief as additional help with cost of living pressures.
Rob Parkinson, chief executive of the Family Holiday Charity, said that the government, industry and voluntary sector needed to “work together to identify and implement an enduring solution” for families.