The 20% tax on childhood

PlayNation speaks to the Association of Indoor Play about VAT – and whether children’s play should be taxed at 20%

When parents pay for their children to visit an indoor play centre, few realise that 20% of that ticket price goes straight to the Treasury. While children’s books, clothing, and food attract no VAT because they are viewed as essential to healthy development, play – which is arguably just as vital – is taxed like a luxury. And as we stand, most indoor play centres do not benefit from any form of VAT relief. What makes this particularly hard to justify is that the UK’s VAT rate of 20% is higher than any country in the EU, except Sweden. Many European nations have long recognised the social and developmental importance of play, applying reduced or zero rates to children’s recreational activities. The UK’s position, therefore, places additional pressure on both families and operators, at a time when affordability and access to safe play are already under strain.

The Association of Indoor Play (AIP) believes this sends the wrong message about how we value children’s health and happiness. “Indoor play is not a treat; it is a fundamental part of childhood,” says Gordon Foster, Owner of Safari Play and AIP Committee Member who leads the Association’s lobbying efforts. “It supports emotional, social, and physical growth in ways that are critical to children’s long-term well-being.”

Play is a fundamental need

Indoor play is far more than entertainment. It is one of the few remaining safe, inclusive, and accessible environments where children can move, explore, and connect freely. Experts agree that play builds confidence, motor skills, emotional intelligence, and resilience. Research from the Play Commission and LEGO Foundation shows that play supports brain development, strengthens family bonds, and helps children learn cooperation and problem-solving skills that will serve them for life. At a time when both childhood obesity and mental health issues are rising sharply, play offers a powerful, preventative remedy. According to NHS data, nearly one in five UK children is classed as obese by the time they leave primary school, and referrals for anxiety and depression have increased significantly since the pandemic. Physical play encourages movement and cardiovascular health, while unstructured play helps to reduce stress, boost mood, and improve self-esteem.

“Children today spend more time indoors, on screens, and less time being active,” the AIP notes. “Indoor play provides a safe and stimulating environment where they can rediscover movement,imagination, and joy. It supports not only physical health but also emotional balance.”

INDOOR PLAY ISN’T A LUXURY – IT’S A LIFELINE FOR CHILDREN’S HEALTH, HAPPINESS, AND DEVELOPMENT

The hidden barrier

However, the affordability of play is increasingly under threat. Energy bills, business rates, and staffing costs have risen dramatically, forcing many operators to raise prices. The 20% VAT applied on top of these increases adds a further burden, often passed directly to families. For many parents, especially those managing tight budgets, that extra tax can be the difference between a visit to a play centre or staying home.

IF FOOD, BOOKS, AND CLOTHING ARE ESSENTIALS, WHY ISN’T PLAY? IT’S TIME WE STOPPED TAXING CHILDHOOD

The inequality of play

This widening affordability gap has created a troubling new reality: play is becoming tiered. Families in lower income brackets are being priced out altogether, unable to justify spending on what has become a heavily taxed form of recreation. The result is that children who could benefit most from the social, emotional, and physical advantages of play are the very ones now excluded. Research consistently shows that children from lower income households are more likely to experience poor mental health and obesity, two issues that indoor play can help to address through physical movement, social interaction, and emotional release. Yet, for many, the cost of entry has become a barrier too high to climb.

Play should never be a privilege reserved for those who can afford it. It is a basic need, integral to healthy childhood development, and should be accessible to every child regardless of family income. Making play affordable is not just a matter of fairness; it’s an investment in public health, community wellbeing, and the next generation’s resilience.

A question of priorities

The UK already applies a zero VAT rate to children’s essentials such as food, clothing, and books. Each is recognised for its contribution to growth and development. Play deserves the same consideration. It nourishes the body and mind, helps to prevent ill health, and strengthens community life.

Reducing or removing VAT on indoor play would make it more affordable for families while recognising its true value to society. As the AIP argues, “If we believe children have a right to play, we must stop taxing it like a luxury and start valuing it as the necessity that it is.”

What’s next?

The next step is clear: government must recognise the right of every child to play VAT-free. Just as we exempt food, books, and clothing because they are essential to development, play must be treated with the same respect. It is not a privilege; it is a right. And it’s time our tax system reflected that.