How the Summer Savings Scheme 2026 Will Affect Families and Businesses
The Government has launched the Great British Summer Savings Scheme to reduce the cost of family activities during the 2026 summer holidays and support businesses in the hospitality, leisure and entertainment sectors.
The temporary measures will run from 25 June to 1 September 2026 and include VAT reductions on selected family activities, as well as free bus travel for children across England.
Temporary VAT Reduction on Family Activities
Under the scheme, the Government will reduce VAT from 20% to 5% on a range of qualifying family-related services. This includes children’s meals purchased in restaurants and cafés, children’s cinema and theatre tickets, and admission fees for attractions such as theme parks, soft play centres, zoos, museums and wildlife parks.
For families, these measures could significantly reduce the cost of days out during the school holidays. For businesses operating within these sectors, the reduction may help stimulate demand and encourage greater visitor numbers during what is traditionally one of the busiest trading periods of the year.
Free Bus Travel for Children
The Government will allow children aged five to 15 in England to travel free on local bus services throughout August 2026. The Government hopes this initiative will make it easier and more affordable for families to access leisure activities and attractions during the summer break while reducing overall travel costs.
What This Means for Businesses
Businesses that fall within the scope of the temporary VAT reduction should review the HMRC guidance carefully and begin preparing for implementation. This may involve updating accounting software and point-of-sale systems, ensuring staff understand which goods and services qualify for the reduced rate, and maintaining appropriate records to support VAT reporting requirements.
For hospitality, leisure and entertainment businesses, early planning will help ensure compliance with the new rules and minimise any disruption when the changes come into effect.
Wider Economic Measures Announced
Alongside the Summer Savings Scheme, the Government has announced several additional support measures designed to strengthen key industries and support economic growth. These include a £350 million Critical Chemicals Resilience Fund, a £120 million support package for the ceramics industry, and a 10 pence per mile increase in tax-free mileage rates for the 2026/27 tax year, backdated to April 2026.
According to the Government, these initiatives form part of a wider package aimed at supporting businesses, helping households manage ongoing cost-of-living pressures and encouraging economic growth across the UK.
How We Can Help
If your business may be affected by the temporary VAT reduction, now is a good time to review the HMRC guidance and assess whether any changes are required to your systems, pricing structures or internal processes.
If you are unsure how the new measures apply to your business or would like assistance with implementation, please contact our team. We can help you understand the requirements, assess the potential impact and ensure that your business remains compliant throughout the duration of the scheme.