Costa Coffee has confirmed a temporary price change on selected children's food and drink items, effective until September 1, 2026. The change, announced via signs in UK cafes, reduces VAT on qualifying kids' products from 20% to 5% for eat-in consumption.
Government VAT Reduction Scheme
The move follows the UK government's decision to temporarily cut VAT on children's meals, family attractions, and entertainment from 20% to 5% between June 25 and September 1, 2026. The scheme aims to make family days out and summer holidays more affordable.
A sign at Costa stores states: "The government has recently announced a VAT change, reducing VAT on Kids Products from 20% to 5% for eat-in consumption." The reduced rate applies to specific items: Kids Cheese Triangles, Innocent Kids Smoothie, Innocent Kids Juicy Water, Pom-Bears, and the Kids Bundle (available at selected stores only).
Eligible Items and Conditions
The temporary VAT reduction runs from July 2, 2026, to September 1, 2026, inclusive. Standard VAT rates will apply after this period. The reduced rate is applied at the till for qualifying purchases.
The government's scheme targets spending during the school summer holidays. It applies to children's meals consumed on premises (in restaurants or cafes) and admissions to family-friendly attractions such as zoos, aquariums, wildlife parks, museums, theme parks, and soft play centres. It also covers children's admission tickets to cinemas, theatres, concerts, and exhibitions, as well as bundled tickets for adults and children.
What Does Not Qualify
The reduced VAT rate does not apply to children's takeaway meals, optional add-on items (like souvenirs or ride tokens), activities and meals already VAT-exempt, and individual adult tickets at cinemas or theatres unless part of a qualifying family package.
A government statement explains: "The objective of this measure is to reduce the cost of selected hospitality and leisure activities commonly used by families with children during the school summer holidays by introducing a reduced rate of VAT for specified supplies. The measure is temporary and is intended to reduce the cost of certain meals and days out during the specified period only. Supplies that are already exempt from VAT will remain exempt."
The statement adds: "The measure is expected to have a positive impact on individuals and households that purchase qualifying children’s meals and admissions during the period of the temporary reduced rate, to the extent that businesses pass on the VAT reduction in the prices they charge. Individuals will not have to do anything other than familiarise themselves with the changes."
