This scheme runs until September 1, 2026, with changes to certain food and drink items for kids
“The measure is expected to have a positive impact”(Image: Getty)
Costa has added a new sign in cafes across the UK that explains a ‘temporary change’ for customers when buying certain food and drink. The cafe is one of the most popular chains in the country, with many more customers expected to place food and drink orders over the next several weeks as families and children enjoy the six weeks holidays.
During that period, the cafe is making changes to selected food and drink items for children. The change follows the UK government’s recent decision to temporarily reduce the VAT rate, cutting the tax on qualifying children’s meals, family attractions, and entertainment from 20% to 5%.
This scheme runs between June 25 and September 1, 2026. It is designed to make family days out and summer holidays more affordable.
On a sign at Costa cafes, the chain said: “The government has recently announced a VAT change, reducing VAT on Kids Products from 20% to 5% for eat-in consumption.” Costa says that the 5% VAT rate will be applied at the till for purchases of the following items.
- Kids Cheese Triangles.
- Innocent Kids Smoothie.
- Innocent Kids Juicy Water.
- Pom-Bears.
- Kids Bundle (selected stores only).
The sign adds: “The temporary change to VAT on Kids Products runs from July 2, 2026, through to September 1, 2026, inclusive. Standard VAT rates will be applied once this period ends.”
What qualifies for the 5% VAT rate and what doesn’t?
The reduced rate is specifically aimed at spending during the school summer holidays and applies to children’s meals that are consumed on the premises (like in restaurants or cafés) as well as family attractions admissions to venues suitable for families with children, which include zoos, aquariums, wildlife parks, museums, theme parks, and soft play centres.
It also applies to children’s admission tickets to cinemas, theatres, concerts, and exhibitions, as well as bundled admission tickets that cover both adults and children. You can read the full official guidance directly from the UK Government Temporary VAT Publication.
It is important to note that this is not a blanket cut for all leisure spending. The reduced VAT rate does not apply to:
- Children’s takeaway meals.
- Optional add-on items (such as souvenirs or separate ride tokens).
- Activities and meals that are already VAT-exempt.
- Individual adult tickets at cinemas or theatres (unless part of a qualifying family package).
A statement on Gov.uk explains: “The objective of this measure is to reduce the cost of selected hospitality and leisure activities commonly used by families with children during the school summer holidays by introducing a reduced rate of VAT for specified supplies. The measure is temporary and is intended to reduce the cost of certain meals and days out during the specified period only. Supplies that are already exempt from VAT will remain exempt.”
It adds: “The measure is expected to have a positive impact on individuals and households that purchase qualifying children’s meals and admissions during the period of the temporary reduced rate, to the extent that businesses pass on the VAT reduction in the prices they charge. Individuals will not have to do anything other than familiarise themselves with the changes.”
