Reduced VAT Rate for Children’s Meals and Other Family Activities over the Summer of 2026

The Chancellor recently announced a temporary reduction of VAT from 20% to 5% on children’s meals and certain other family leisure activities over the summer period this year.  The stated aims of this measure are to ease the financial burden on families and to assist businesses in the leisure industry by promoting attendance by families.

The reduction will apply from 25 June to 1 September 2026 (inclusive). This period has been chosen to coincide roughly with school holidays.

The reduction for children’s meals applies only to:

• Children’s menu meals served in cafes and restaurants for consumption on the premises. Takeaway meals do not qualify
• Items from a specific children’s menu. It does not apply to smaller portions from a menu which is not held out to be for sale only to children

Restaurants and cafes which want to take advantage of the reduced rate, and which do not currently offer specific children’s menus, will have to introduce childrens’ menus so that they can apply the reduced rate on childrens’ meals.

It is important to note that the application of the reduced rate and the passing of the VAT savings to customers are optional.  If a business wishes not to apply the reduced rate, or wishes to apply the reduced rate where available but not pass the savings on to customers, that is entirely at their discretion.

Reductions on other family activities

The reduced rate may also be applied to:

• Children’s and family tickets for cinemas, theatres, concerts, shows and exhibitions
• Admission tickets for children and adults to attractions such as amusement parks, fairs, circuses, museums, zoos, adventure parks, soft play and observation attractions.

There are various exceptions and conditions which apply to the reduction. These are too numerous and complex to set out in full here, but the principal restrictions include:

• The reduction for admission to theatres and so on applies only to children’s tickets and to tickets which are sold as a family package, for example a ticket which admits entry to 2 adults + 2 children. The reduction applies to the whole amount of a family ticket, but if family tickets are not offered, the reduction would only apply to children’s tickets and not to the tickets of any adults who accompany them.
• In contrast to this, the reduction applies to any customer where the attraction is considered suitable for families with children. Examples of such attractions include: amusement parks, circuses, museums and other cultural attractions, zoos and aquariums. The reduction applies to charges for entry to such attractions for anyone, including adults who are not accompanied by children.
• Sporting events are not eligible for the reduced rate.

Further information can be found here Temporary reduced rate of VAT for children’s meals, tickets and family attractions – GOV.UK

The complexities of this measure are bound to cause a degree of confusion and misunderstanding. There will be a number of challenges for businesses:

• They will have to know which, if any, of the goods and/or services they offer are eligible for the reduced rate;
• Where a business offers a mixture of standard rated and reduced rate supplies, front of house staff will have to understand which supplies are eligible for the reduced rate
• Businesses will have to ensure that their till systems and accounting systems can cope with the reduced rate
• Staff will have to be prepared to explain the system to customers: for example, theatre staff should be ready to explain that they may not be able to offer reduced rates to adults who took advantage of reduced rates at the museum down the road.

Some businesses may question whether the additional work and inconvenience are worth if for a measure which will be in force for less than ten weeks. Nevertheless, it is hoped that the reduction will be beneficial for customers and businesses alike.

Photo by Jeremiah Lawrence on Unsplash