Government announces VAT reduction for children and family theatre tickets this summer

The UK government has announced a temporary summer initiative intended to reduce the cost of family activities and encourage spending across hospitality, entertainment and visitor attractions.

Called Great British Summer Savings, the scheme will run from 25 June to 1 September 2026 and will reduce VAT from 20 per cent to five per cent on a range of eligible activities and purchases across the UK.

The package includes lower costs on children’s meals in restaurants, children’s and family tickets for theatres, cinemas, concerts, exhibitions and shows, as well as admission tickets for attractions including theme parks, adventure centres, soft play venues, fairs, zoos, wildlife parks and nature reserves.

The government said the programme is expected to cost approximately £300 million and is designed as a temporary measure intended to support both families and businesses during the summer period.

Alongside the VAT reduction, children aged between five and 15 in England will be able to travel free on local bus services throughout August.

Prime Minister Keir Starmer said the policy was intended to help households continue dealing with cost-of-living pressures.

“When I think about the summer holidays, I think about the Lake District – where I went as a child and later made memories with my own family,” he said.

“I know how precious that time is, yet too many parents feel they have to hold back because the cost of living is still squeezing budgets.

“This summer we’re cutting the cost of a day out together – free bus travel for children aged five to 15 in England, and VAT slashed on a wide range of children’s attractions – so families can afford more time together.”

Chancellor Rachel Reeves said the measures formed part of a broader programme aimed at supporting household spending while maintaining wider fiscal rules.

“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,” Reeves said.

She added that the package sits alongside previously announced measures including fuel duty freezes, rail fare freezes and support on energy bills.

The government said funding for the package will partly come from reforms to the foreign branches exemption, which ministers say will prevent multinational companies from reducing UK tax liabilities through overseas losses.

The reduced VAT rate will apply to stage shows that have “tickets that are marketed and sold as children’s tickets.”

The rules also went on to say: “Where a ticket is held out for sale as a right of admission for a family which includes one or more children, the reduced rate applies to the whole ticket, including any adult admissions included within that package.”

How this is adopted by UK theatres remains to be seen, especially as, according to the rules, “if a venue sells only standard admission tickets and does not offer tickets marketed as children’s admissions. All tickets remain standard-rated.”

It is worth noting that some not-for-profit cultural organisations can qualify for a VAT exemption, meaning admission to their shows is free of VAT already.

Theatre has long prioritised family access to live shows, including the very successful annual Kids Week scheme, where one child (17 and under) goes completely free for every full-paying adult, with up to two additional children’s tickets available at half price.