The Great British Summer Savings scheme, announced by Chancellor Rachel Reeves in late May, goes live on Thursday, June 25, aiming to ease the financial burden on cost of living hit families by slashing VAT on eligible purchases from 20% to a temporary 5%. Additionally, children aged 5 to 15 in England will enjoy free bus travel throughout August.
What are the basics?
From June 25 to September 1, the reduced 5% VAT rate applies to eligible services including children's meals eaten in restaurants; children's and family tickets for cinema, theatre, exhibitions, shows, and concerts; and tickets for both children and adults to attractions such as amusement parks, fairs, circuses, museums, zoos, adventure parks, and soft play areas.
Which companies are taking part?
The Treasury could not provide a list or rough figure for participating businesses, as the scheme operates on an opt-in basis. There is no legal requirement for businesses to participate, but there is no cost to them since the savings come from reduced VAT payments, and lower prices aim to boost trade. Well-known attractions confirmed to be taking part include Peppa Pig World, Alton Towers, and Legoland.
How will I know who is participating?
An online search tool will allow users to find participating businesses in their area, but it will not be live from the start. The Treasury stated it will be launched "soon."
What sort of savings could I see?
Firms have already begun showing promotional prices. Merlin, owner of 20 venues including Alton Towers and Legoland, has updated ticket prices with "summer VAT savings applied." Advance tickets for both parks now start at £29.75, down from £34. Wiltshire safari park Longleat has reduced advance tickets for a family of four to £122.30, a saving of £17.50. Cinema chains Odeon, Vue, and Cineworld are also participating; Odeon said a family ticket for two adults and two children will drop from £32 to £28.50. Dining chains Greene King (over 2,500 outlets), McDonald's, Wetherspoons, and Nando's are passing on the tax saving on children's meals. Nando's "Nandino" meals will fall from £6.95 to £6.08, Wetherspoons children's menu meals from £5.75 to £5.03, and McDonald's typical Happy Meal by 27% to £2.99. Season tickets like Merlin passes starting at £139 are not included; the rules state weekly or season passes allowing multiple visits beyond summer do not qualify if they cost more than a standard single-entry ticket.
How much will it cost the government?
The Treasury estimated the scheme would cost around £300 million.
