Women to save up to £2 on period pants as government scraps VAT
today
Retailers, including M&S, Primark and Tesco, have committed
to pass on the savings, worth 16%
Move follows scrapping of tampon tax in 2021, removing VAT from
sanitary products, following the UK’s decision to leave the EU
From today [1 January 2024] women will save up to £2 on period
pants on average - up to 16% - as the government scraps VAT on
the underwear.
The pledge to scrap the tax was made by the Chancellor at the Autumn Statement 2023
and follows the end of the tampon tax in January 2021.
Around 80 MPs, charities and retailers called on the government
to scrap the VAT in August 2023.
With Marks & Spencer spearheading the campaign, other
retailers including Primark and Tesco have committed to pass the
tax cut straight to the consumer.
Financial Secretary to the Treasury, , said:
“This is a victory for women across the UK and for the
campaigners who’ve helped raise awareness of the growing
importance of period pants.
“It’s only right that women and girls can find more
affordable options for what has become an essential and
environmentally friendly product.”
Since reforming the ‘tampon tax’, the market for period underwear
has expanded and they are now a mainstream choice for many women.
The scrapping of the current VAT will ensure that period
underwear is treated the same as traditional period products.
Having left the European Union, the UK is no longer legally bound
by EU laws which saw sanitary products subject to five different
rates of VAT between 1973 and 2021.
The move comes after the ‘Say Pants to the Tax’ campaign, led by
retailers such as Marks & Spencer, women’s groups and
environmentalists, called to scrap the tax.
Victoria McKenzie-Gould, Corporate Affairs Director
at Marks & Spencer, said:
“Paying tax on period pants was a bum deal for women
everywhere so we’re thrilled that the Treasury has done the right
thing by axing the tax and levelling the playing field on period
products for good.
“Nearly 25% of women cite cost as a barrier to using period
pants so we know the new legislation that comes into effect from
today will make a big difference to women’s budgets across the
UK.
“A big thank you to WUKA, the tens of thousands of
individuals, politicians, brand and retailers, who threw their
weight behind our campaign - Say Pants to the Tax – and of course
a big thank you to the Chancellor and HM Treasury team who made
the change we were campaigning for a reality.”
Women with sensory issues who find conventional period products
difficult to use will also benefit from period pants becoming
more affordable.
The savings for women are subject to the VAT cut being passed on,
with the army of retailers behind the campaign pledging
themselves to play their part to pass on the 20% VAT cut.
Laura Coryton, tampon tax campaigner and founder of social
enterprise Sex Ed Matters, said:
"Ending the tax on period underwear will make a huge
difference, particularly given skyrocketing levels of period
poverty across the UK. It will also help to tackle the stigma
associated with periods, which stops at least 10% of girls going
to school every month.
"Now, it is important for retailers to pass savings on to
consumers, not only in relation to period underwear, but all
period products."
Notes to editors
- Women’s Sanitary Products have been subject to five different
tax rates since 1973. The UK first introduced VAT in 1973 with a
standard rate of 10% applied to sanitary products. In 1974,
standard VAT was cut to 8%, before rising to 15% in 1979 and
17.5% in 1991. The government moved sanitary products to a
reduced rate of 5% in January 2001 following a campaign and
debates in Parliament.
-
Read the 50
retailers’ letter to the Financial Secretary to the Treasury
from August 2023.
