Families could save almost £60 this summer thanks to the temporary VAT cut on days out and meals

• Families could save almost £60 this summer thanks to the temporary VAT cut on days out and meals
• Families plan to spend an average of £518 on days out and activities over the 6-week school holidays
• VAT cut from 20% to 5% on eligible children's meals and family leisure activities from June 25 to September 1, but businesses can choose whether to pass on the discount
• A family of four saving more than £22 on a single trip to Alton Towers Resort
• 2 in 3 (66%) parents claim rising costs will mean they will cut back on family days out and activities over the summer holidays, with 90% saying they feel financial pressure over the period

Confused.com's Personal Finance Editor shares tips on cutting summer holiday costs.

Families could save nearly £60 over the six-week summer holidays thanks to the government's temporary summer VAT reduction, new analysis reveals.

The "Great British Summer Savings" scheme will see VAT cut from 20% to 5% on eligible children's meals and family leisure activities between June 25 and September 1, in a bid to ease the financial pressure on parents during the school break.

These savings will be welcomed by families across the UK, as further research of 1,100 parents with school-aged children shows they plan to spend an average of £518 on days out and activities over the summer break. This cost includes childcare, out-of-school clubs, family trips and days out.

However, with the new VAT saving scheme, analysis based on a family of four – two adults and two children – found the savings could add up quickly across the summer.

The biggest reductions are on higher-cost attractions. A day out at Alton Towers could save a family up to £22.28 on tickets alone, while smaller savings on meals and cinema trips could also mount up.

A weekly meal out at Pizza Express could save £1.44 each visit, adding up to £8.64 over six weeks. Meanwhile, an Odeon cinema trip could save around £1.30 per visit – or £5.20 over four visits.

In total, a family combining two theme park trips, weekly meals out and four cinema visits over the summer could save around £58.40.

Savings for a family of four after VAT savings scheme

Full table available in notes to editors

The VAT cut applies to:

• Eat-in children's meals at restaurants
• Family and children's tickets for cinemas, theatres, concerts, shows and exhibitions
• Admission tickets to attractions including amusement parks, museums, soft play centres, circuses, fairs and wildlife parks

However, the scheme does not apply to season tickets, and businesses can choose whether to pass on the savings.

Families can also cut costs further this summer by making use of "kids eat free" deals, discounted attraction tickets through rail promotions, supermarket loyalty vouchers and free local events.

According to further research, the school holidays cause financial pressure for 9 out of 10 (90%) parents. And for some, this could mean cutting back. That's as 2 in 3 (66%) parents surveyed say that rising costs will mean they have to cut back on family days out and activities over the 6-week period. Family days out (17%), holidays abroad (16%) and eating out (11%) are amongst the biggest pressures they feel.

Many also find that certain activities aren't worth the value, particularly theme parks (45%), cinema trips (34%) and eating out in restaurants (30%). However, 86% say that if costs were decreased over the summer holidays, they'd be more likely to take their families on more days out.

Parents are also being reminded they can use Tax-Free Childcare to help cover eligible holiday clubs and childcare costs, with the government topping up £2 for every £8 deposited, up to £2,000 a year per child.

For grandparents helping out over the summer, Specialist Adult Childcare Credits could also boost their State Pension entitlement.

For more information, read Confused.com's guide to how to save money over the summer holidays.

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Notes to editors