The UK government have announced a reduced rate of 5% for certain supplies of children's meals to support businesses as part of their Great British Summer Savings scheme.
The reduced rate will apply from 25 June 2026 to 1 September 2026 (inclusive) and applies to restaurants, cafés and similar catering establishments. Takeaway meals do not qualify for the reduced rate.
Children's meals
The reduced rate applies to the supply of children's meals where both of the following conditions are met:
- the meal is held out for sale only as a meal for children
- the meal is supplied as part of catering services by a restaurant, café or similar establishment for consumption on the premises
Whether a meal is held out for sale only as a meal for a child will depend on how it is marketed, presented and priced rather than who consumes it (for example, being included on a distinct children's menu).
The reduced rate does not apply for:
- meals marketed as smaller portions
- lower-calorie options
- discounted versions of adult meals
- shared meals intended for both adults and children
Where the same meal appears on both an adult and children's menu, the children's version would normally be differentiated by portion size and/or price. Portion size alone is not a determining factor.
Where a children's meal is supplied for a single inclusive price (for example including a drink or additional courses), the entire package can qualify for the reduced rate. Optional items, add-ons or upgrades priced separately that do not form part of the children's meal remain subject to their normal VAT liability. Describing an item as 'free' does not determine its VAT treatment and normal VAT principles apply.
Meals include drink, meaning that a non-alcoholic drink supplied as part of a children's meal will qualify for the reduced rate. Meals that include an alcoholic drink will not be regarded as a children's meal.
Meals that are exempt from VAT (for example where supplied alongside exempt education or care) will be unaffected by these changes.
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