- The government today announced a scheme that will slash VAT on kids’ meals, children’s tickets for cinemas, concerts, exhibitions and shows, and all tickets to some attractions during the summer (source: Great British Summer Savings: VAT slashed to save families money on days out | GOV.UK)
- Rachel Reeves’ ‘Great British Summer Savings’ will also offer free bus fares this August for children aged 5-15 in England and cut import tariffs on over 100 different types of food
- But the scheme stops short of helping struggling parents with childcare during school summer holidays – with costs averaging at around £180 per week*
- Recent cost-of-living announcements have also included a cut in duty on red diesel, a 10p per mile rise in mileage rates for those who drive for work and a freeze in fuel duty to the end of the year
- When asked to name the biggest issues facing the UK today, people are more likely to name the cost of living (90%) than the state of the NHS (80%) – this trend rises to 96% among those aged 16-29
Sarah Coles, head of personal finance at AJ Bell, comments:
“The beleaguered Labour leadership is handing out sweeteners to families for the summer. The cost of living is squeezing households hard, so the government is offering discounts and freebies to take some of the pressure off.
“The rate of VAT will be cut from 20% to 5% for everything from kids’ meals in cafes to soft play admission and theme park tickets. It’s a nice boost for hard-pressed families, and nobody is going to turn their nose up at cheaper chicken nuggets and chips. However, it’s not necessarily a massive game-changer.
“The most cash-strapped families have already made an art of entertaining the kids without spending any money, although being able to ride the bus for free will help them do so over a wider area and if they get the front seat of a top deck it could become an attraction all of its own.
“Meanwhile, savings savvy families already visit cafes offering free children’s meals, and use vouchers and loyalty points to pay for attractions and days out, so they’ll see less of a saving. For those paying full price for a day at the theme park, it’s a handy discount, but it’s still going to be one of the more expensive days of the year.
“For many working parents, the cost of all of these things is a drop in the ocean compared to the small fortune they hand over for childcare during the summer. On average, summer holiday care costs around £180 a week per child*. In England, the free 15 or 30 hours only applies during term time. You can spread it over the whole year, but anyone with 15 free hours a week will effectively see that fall to just 11.
“It means it’s worth taking steps to bring childcare costs down yourself. You can use the tax-free childcare scheme to pay for holiday care, and for every £8 you put into your account, the government will top it up by £2. It only covers providers who have signed up to the scheme, but if they’re on the list, you could save hundreds of pounds over what could still be the six most expensive weeks of the year.”
*Source: Coram Holiday Childcare Survey 2025
