The Great British Summer Savings Scheme will also apply to family tickets at theme parks, zoos, museums and fairs, as well as children’s cinema, theatre, concert and soft-play tickets.
Ministers said the move is intended to ease pressure on household budgets and support the hospitality sector during its busiest months.
The scheme will operate UK-wide, with the start date coinciding with the beginning of the Scottish school holidays and continuing until pupils in England, Wales and Northern Ireland return to classrooms in early September.
Prime Minister Keir Starmer said the Government wanted to make summer outings more affordable for families still feeling the effects of the cost-of-living crisis.
“When I think about the summer holidays, I think about the Lake District — where I went as a child and later made memories with my own family,” he said.
“I know how precious that time is, yet too many parents feel they have to hold back because the cost of living is still squeezing budgets.”
He said the Government’s measures, including free bus travel for children aged five to 15 in England and a VAT cut on a wide range of children’s attractions, were aimed at ensuring “families can afford more time together”.
Chancellor Rachel Reeves said the scheme would help households while supporting businesses during the peak summer season.
“Whether it is a fun day out, a family meal or taking advantage of the thousands of amazing attractions across the UK, Great British Summer Savings will support families with the little treats in life while boosting business across the UK,” she said.
Responding to the announcement, UKHospitality said the move recognised that a lower rate of VAT delivers immediate benefits for consumers, businesses and the wider economy.
The trade body described the VAT cut as a “positive step” for families and urged the Government to take a “bold” next step by reducing VAT for the entire hospitality sector.
“It’s good to see the Government recognise the importance of a lower rate of VAT for hospitality as the quickest and simplest way to lower prices and boost consumer confidence,” said Kate Nicholls.
“A 5% rate of VAT for family admissions to visitor attractions, children’s meals and soft play is a positive step to help families enjoy a great British break this summer.
“If there is scope to further support families by including accommodation in this reduced rate, I would encourage the Chancellor to do so to help tackle one of the biggest costs of a family holiday.
“This should now be viewed by Government as a down payment on a wider shift to a lower VAT rate for the entire hospitality sector, to bring us in line with Europe. Our biggest competitors benefit from VAT rates that average around 10%, and can be as low as 7%, and the UK is a clear outlier.
“As the Government has recognised today, VAT is the single biggest lever it can pull to lower prices, tackle inflation, drive demand, boost spending, generate growth and create new jobs. I would urge it to be bold and cut VAT for the entire hospitality sector.”