Written question asked by Shockat Adam (Independent (affiliation)) on Friday, 28 August 2026, in the House of Commons. It was due for an answer on Wednesday, 2 September 2026. It was answered by James Murray (Labour) on Monday, 7 September 2026 on behalf of the Treasury.

Personal Care Services: VAT

Question: To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of a reduced rate of VAT on labour-intensive personal care services; and on its potential effect on employment, apprenticeships and tax revenues in the sector.

Answer

Supplies of welfare services, including the provision of care, are already exempt from VAT if they are supplied by eligible bodies, such as public bodies or charities.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Exceptions to the standard rate or extensions of existing reliefs have always been limited and balanced against affordability considerations.

Secondary information

Type: Written question
Reference: 23593
Session: 2026-27
Subjects: Personal care services VAT
Link: View this Written question on www.parliament.uk

Personal Care Services: VAT

Secondary information

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