PARLIAMENTARY WRITTEN QUESTION
Spectacles: VAT (4 October 2024)

The government offers support for individuals to help with the cost of glasses through NHS optical vouchers. Those eligible for help include children and those on certain income-related benefits. The value of optical vouchers varies from £42.40 to £233.56, depending on the level of a patient’s glasses prescription.

While spectacles attract the standard rate of VAT, health and welfare services, including opticians and eye tests, are exempt from VAT made by qualifying opticians.

One of the key considerations for any potential new VAT relief is whether the cost saving is likely to be passed on to consumers. Evidence suggests that businesses only partially pass on any savings from lower VAT rates.

VAT is a broad-based tax that applies to most goods and services. Any new VAT relief must be considered in the context of the current fiscal position. As set out at the end of July, the Chancellor of the Exchequer has pledged to restore economic stability after revealing £22 billion of unfunded pressures in 2024-25 inherited from the previous Government.

Restoring fiscal responsibility and economic stability are critical to getting our economy growing and keeping taxes, inflation, and mortgages as low as possible.

As with all taxes, the Government welcomes representations on how the tax system can be improved.