Chancellor Rachel Reeves has officially announced the government's 'Great British Summer Savings' scheme. Designed as a targeted, temporary package to ease cost-of-living pressures for families over the school holidays, the measures are being funded in part by changes to how energy companies are taxed on their foreign branches.
1. Massive VAT Cut on Summer Attractions & Kids' Meals
From 25 June to 1 September 2026 (covering the full UK school holiday period), the rate of VAT will be temporarily slashed from 20% to 5% on eligible family activities. This applies across England, Wales, Scotland, and Northern Ireland.
What's covered:
- Admission tickets for both children and adults to theme parks, amusement parks, soft play centres, zoos, aquariums, museums, circuses, and adventure parks.
- Entertainment: Children's and family tickets for cinemas, theatres, concerts, shows, and exhibitions.
- Food: Children's meals served in restaurants (defined as items ordered from a children's menu and consumed on the premises).
2. Free Bus Travel for Children
Throughout the entire month of August (1 August to 31 August 2026), children aged 5 to 15 in England will be able to travel completely free on participating local bus services.
- The scheme features unlimited journeys with no registration required.
- This is backed by a £100 million government commitment to support families getting out and about.
3. Targeted Food Tariff Cuts
To help lower supermarket checkout prices amid global inflation pressures, the government is introducing targeted cuts to agri-food tariffs. This will reduce import pressures on specific everyday items, including biscuits, chocolate, dried fruit, and nuts. Note: This follows a decision by the Treasury to back away from a previously rumored voluntary grocery price cap after a strong backlash from retail bosses.
4. Funding via Energy Company Taxes
To pay for these measures—alongside the previously announced £455 million freeze on fuel duty—Reeves announced changes to the tax rules for energy companies. The government will close loopholes by taxing the profits of 'foreign branches' of UK-based energy firms, which the Treasury expects to raise hundreds of millions of pounds annually.
Example Savings: The Treasury notes that if businesses pass the full VAT cut onto consumers, a family of four (two adults, two children) could look to save roughly £20 off theme park tickets, £17 off a wildlife park visit, £11 at an aquarium, and £2 off children's meals on a lunch out.
