The government’s Great British Summer Savings initiative will reduce VAT on selected family activities and meals this summer. Financial experts say the savings may be limited for many households when compared with the cost of childcare during the school holidays.
Families could see lower prices at attractions such as theme parks and aquariums, as well as on some restaurant meals. Yet the largest expense for many working parents remains holiday childcare, which can run into hundreds of pounds over the summer break.
According to reports, the temporary Great British Summer Savings scheme will reduce VAT from 20% to 5% on a range of family-focused activities. The measure has been presented as a way to lower the cost of days out during the school holidays.
For many households, though, the financial pressure of the summer period extends well beyond leisure spending. Childcare costs continue to represent one of the most significant expenses faced by parents while schools are closed.
Childcare Costs Remain the Biggest Challenge for Many Families
Sarah Coles, personal finance expert at investment platform AJ Bell, said the savings available through the new scheme may not amount to a substantial change for working parents.
According to AJ Bell, Coles pointed to findings from the Coram Holiday Childcare Survey 2025, which estimated that summer holiday childcare costs around £180 per child each week on average.
“For many working parents, the cost of all of these things is a drop in the ocean compared to the small fortune they hand over for childcare during the summer,” Coles said.
She also highlighted the limits of existing free childcare arrangements. In England, the free 15 or 30 hours entitlement applies during term time rather than throughout school holidays. Families can spread those hours across the year, but Coles noted that parents receiving 15 free hours a week would effectively see that amount reduced to around 11 hours when distributed more evenly.
The comments place the focus on a cost that many families cannot avoid. While discounts on leisure activities may reduce spending in some areas, childcare remains a separate and often much larger financial commitment during the six-week summer break.
Discounts May Help, but Many Families Already Seek Savings Elsewhere
The Great British Summer Savings scheme is expected to lower the cost of several popular family activities. According to reports, a family of two adults and two children could save £20 on theme park tickets. A family lunch including children’s meals could generate a saving of around £2.
Coles said that some households already rely on low-cost or free options to manage spending during the holidays. She suggested that families with the tightest budgets have become accustomed to finding ways to entertain children without spending money.
She also noted that many cost-conscious families already take advantage of cafés offering free children’s meals and use vouchers or loyalty points to reduce the cost of attractions and outings. As a result, those households may see less benefit from the VAT reduction than families paying standard prices.
Alongside the new discounts, Coles encouraged parents to consider the government’s tax-free childcare scheme. According to AJ Bell, the programme allows families to receive a £2 government contribution for every £8 deposited into a childcare account, provided the childcare provider is registered with the scheme.
“It only covers providers who have signed up to the scheme, but if they’re on the list, you could save hundreds of pounds,” Coles said, referring to what she described as one of the most expensive periods of the year for many families.
