Families will benefit from cheaper prices on days out, cinema tickets and meals from this week as Labour’s cost of living package for the summer holidays begins.
Announced by Rachel Reeves in May, the chancellor said that the ‘Great British summer savings’ discount scheme will “support families with the little treats in life”.
It introduces a temporary VAT cut on family activities beginning on 25 June, when schools break in Scotland. The discounted prices will last for nine weeks, until 1 September, when schools return in England, Wales and Northern Ireland.
The cut reduces the standard 20 per cent rate to five per cent, with businesses expected to pass on their savings to families in the form of reduced prices.
It applies to a range of family-targeted products and activities. The Treasury says this includes:
- Children’s menu meals served in restaurants for consumption on the premises
- Children’s and family tickets for cinemas, theatres, concerts, shows and exhibitions
- Admission tickets, for both children and adults, to a range of attractions, including: amusement parks, fairs, museums, zoos, soft play centres, circuses, adventure parks, nature reserves, wildlife parks and observation attractions.
The government says that the discount, if passed on in full by businesses, could equate to £20 off a family ticket to a theme park, £11 off an aquarium trip, and £2 off a children’s meal on a lunch out.
The scheme comes as cost of living concerns continue to grow, with the global oil shock of the US-Iran war hitting energy and fuel prices worldwide.
In Britain, 79 per cent of adults reported an increase in their cost of living between April and May, according to official research, with the vast majority (92 per cent) pointing to rising food prices as a key factor.
Ms Reeves 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.
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“We are able do this because we have made the right choices, resulting in the UK having the fastest growing economy in the G7, with inflation going down.
“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.”
Which businesses are taking part?
Several businesses with locations across the UK have committed to passing on the VAT savings from the government scheme, meaning cheaper prices for families.
This includes Merlin Entertainments, which runs Alton Towers, Thorpe Park, Legoland and Chessington World of Adventure.
Butlin’s, Haven Holidays, and Gulliver’s – owner of Peppa Pig World – have also confirmed new discounted prices. Odeon, Vue and Cineworld cinema chains are also reducing prices for families.
On the food side, several large businesses have said they are taking part in the scheme. This includes Nando’s, McDonald’s, KFC, Burger King, and pub chains Greene King, Wetherspoons and Shepherd Neame.
Fiona Eastwood, chief executive of Merlin Entertainments, said: “It’s encouraging to see the sector come together to help families save more this summer. By reducing VAT on days out, the Great British Summer Savings initiative will give people more opportunities to get out, explore and turn everyday moments into memorable experiences.”