The government has announced a raft of measures aimed at helping families manage the cost of living during the summer holidays. The newly launched 'Great British Summer Savings' scheme includes a temporary cut to VAT on days out and meals, free bus travel for children in August and targeted cuts to food tariffs.
Rachel Reeves, Chancellor of the Exchequer, said "Whether it is a fun day out, a family meal or taking advantage of the thousands of amazing attractions across the UK, Great British Summer Savings will support families with the little treats in life while boosting business across the UK".
"I know the cost of living is still a number one concern for households. Our economic plan is the right one, supporting families and businesses and building a stronger and more secure Britain".
Reduced VAT on summer days out and meals
In an effort to make family weekends and holidays more affordable, the government is temporarily reducing VAT from 20% to 5% on a range of activities. Businesses will be expected to pass these VAT savings directly on to customers, which should help to lower the cost of a typical family day out. The reduction will run from 25th June to 1st September 2026, covering the school summer holiday period.
The reduced VAT rate applies to:
- Children's meals - Meals served from a dedicated children's menu, provided they are eaten on the premises.
- Entertainment tickets - Children's and family tickets for cinemas, theatres, exhibitions, concerts, and shows.
- Attraction admissions - Standard entry tickets for both adults and children for venues such as amusement parks, museums, zoos, aquariums, wildlife parks, farm visitor attractions and soft play centres.
Free bus travel for children in August
As part of the 'Great British Summer Saving' scheme package, children aged between 5 and 15 in England will be able to travel for free on participating local bus services throughout August.
The scheme requires no registration and offers unlimited journeys at no cost to families. According to government figures, this could save a family with two children around £27 in August, based on a weekly return trip with a typical £1.50 child fare.
The initiative aims to make it easier for families to explore their local area and enjoy the summer break without the added financial pressure of transport costs.
Cuts to everyday food tariffs
In an effort to reduce pressure on grocery bills, the government is also planning to suspend tariffs on more than 100 everyday food items. The targeted cuts will apply to products such as biscuits, chocolate, dried fruit, and nuts.
While the full list of products is yet to be published, the government estimates that these tariff suspensions could benefit consumers by more than £150 million a year through lower food prices at the supermarket checkout.
Additional support for drivers
Alongside the summer savings scheme, the Chancellor confirmed a 10p per mile increase in tax-free mileage rates for the 2026/27 tax year, backdated to April 2026. According to the government, this will save a worker doing 6,000 business miles in their own vehicle around £120. This is in addition to the recent announcement that the 5p fuel duty cut will be extended until the end of the year.
How much could a typical family save this summer?
The exact amount you save will depend on how often you go out and where you live. To give you an idea of the potential savings, we have calculated a hypothetical scenario for a family of four (two adults and two children) enjoying a few treats over the six-week school holiday period:
- Two big days out (e.g., a zoo or theme park) - If family tickets cost £100 before tax, the old 20% VAT rate would make the total price £120. With the new 5% VAT rate, the price drops to £105. By doing this twice over the summer, a family would save £30.
- Three cinema trips - If a family ticket costs £30 before tax, the price with 20% VAT is £36. At 5% VAT, it falls to £31.50. Across three trips, this results in a saving of £13.50.
- Five meals out - If a couple of children’s meals cost £10 before tax, the old price with 20% VAT would be £12. At 5% VAT, this becomes £10.50. Across five meals out over the summer, this saves £7.50.
- Bus travel - Based on the government’s figures, making use of the free bus travel scheme for two children taking weekly return trips in August could save around £27.
In this scenario, a family spending £434 over the summer holidays could save a total of £78 just from the VAT cuts and free bus travel, without factoring in any additional savings from the targeted food tariff cuts on the weekly supermarket shop.
Remember, these savings assume that businesses pass the full VAT cut directly onto customers. It is always a good idea to check prices online before heading out to make sure you are getting the best deal.
Are you guaranteed to save money on days out?
The short answer is no. While the government has lowered the tax on these activities, the final price you pay is still decided by the individual business. This means it is entirely up to the venue whether they pass the VAT cut on to you.
It is likely we will see a mixed approach across the UK this summer. Many businesses will lower their prices, passing the savings directly to you to attract more families during the busy holiday period. However, some venues may decide to keep their ticket or menu prices exactly the same. By doing this, they effectively keep the 15% tax difference for themselves. Some businesses may feel this is necessary to help them cope with their own rising running costs.
Because of this, it is important to do your research before you travel. Take a few minutes to check venue websites in advance and look for those actively advertising the tax savings. Planning ahead and comparing your options online is the best way to ensure your family actually benefits from the scheme.
What is excluded from the scheme?
While the scheme is broad, there are some notable exceptions to be aware of. Sports facilities, such as community swimming pools, are not included as many are already exempt from VAT.
Additionally, season tickets will not qualify for the discount if they allow repeat entry outside the official 25th June to 1st September dates, unless the season ticket is priced exactly the same as a standard single-entry ticket.
How to make the most of the summer savings
These temporary measures may help to reduce your outgoings during what is typically an expensive time of year. To maximise the benefits, plan your days out around the attractions and transport options included in the scheme. Always check with local transport providers and venues in advance to ensure they are participating in the VAT reductions or the free bus travel initiative. Additionally, check out our article 'How to save money on eating out this school holiday' where we list some of the places you can eat for free or at a discount throughout the upcoming school holidays.
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