The UK government has launched a program called 'Great British Summer Savings' designed to help families reduce the cost of meals and summer activities for children, including visits to amusement parks, theaters, and museums.
According to a government announcement, from June 25 to September 1, 2026, VAT will be temporarily reduced from 20% to 5% to help lower the cost of day trips and boost customer numbers for struggling businesses.
This initiative is designed to alleviate pressure on household budgets while supporting the leisure and hospitality sectors. The government estimates the program will cost around £300 million (equivalent to $403 million).
In addition, children aged 5 to 15 will be able to use public buses for free throughout August. Prime Minister Keir Starmer shared: 'When I think about summer holidays, I think of the Lake District – where I went as a child and later made memories with my own family. I know how precious that time is, but too many parents feel they have to hold back because the cost of living is still squeezing their budgets.'
Chancellor of the Exchequer Rachel Reeves stated that the reduced VAT rate will apply to children's menus, family tickets at cinemas, theaters, concerts, performances, and exhibitions, as well as entrance fees to attractions such as amusement parks, fairs, museums, and zoos. Reeves emphasized: 'I know the cost of living remains the top concern for many households. Our economic plan is the right one – supporting families and businesses while building a stronger, more secure Britain.'
The announcement comes amid ongoing high fuel costs for families in the UK and across Europe, linked to the conflict in Iran. It also arrives at a difficult political time for Starmer, as his Labour Party suffered significant losses in local elections earlier this month, while the right-wing Reform UK party, led by Nigel Farage, gained ground.
