Eat out to help out: how it will work in restaurants

Dubbed the 'Dosh for Nosh' scheme, Chancellor Rishi Sunak said everyone in the country would get the discount in an effort to get customers back into restaurants, cafes and pubs.

As part of a raft of wide-ranging measures, the Chancellor has also slashed VAT from 20% to 5% for the struggling hospitality and tourism sector.

Read next: Chancellor sets out emergency budget of meal vouchers, no stamp duty and less VAT

How will it work?

Meals eaten at any participating business from Monday to Wednesday during August will be 50% cheaper, up to a maximum discount of £10 per head for everyone.

Businesses can then claim the money back, with the funds in their bank account within five working days.

Is it just for adults?

Nope, it includes children as well.

What does it apply to?

It covers any eat-in meal at any participating restaurant, cafe, pub or other eligible food service establishment across the UK during the month of August.

Can I use this discount more than once?

Yes, a Treasury document said the discount can be used “unlimited times”.

Can I buy alcohol?

No, it only includes non-alcoholic drinks.

What does this mean for businesses?

If you're a business, you will need to register on a so-called 'simple website' which will be open from Monday.

Mr Sunak told MPs: “Each week in August, businesses can then claim the money back, with the funds in their bank account within five working days.”

To support restaurants and the people who work in them we’re saying ‘Eat Out to Help Out’.

So for the month of August we will give you a 50% reduction, up to £10 per head, on sit-down meals and non-alcoholic drinks Monday-Wednesday. #PlanForJobs pic.twitter.com/D6eznIDjqC

— Rishi Sunak (@RishiSunak) July 8, 2020

Shares in restaurant companies moved higher following the announcement, with shares in Wagamama-owner The Restaurant Group moving 2.6% higher shortly after the Chancellor’s statement.

What else is being done for businesses like this?

Well, quite a lot. There will be a VAT cut from 20% to 5% for the hospitality and tourism sectors from July 15 until January 12, 2021.

We're reducing VAT to 5% for goods and services supplied by the tourism and hospitality sectors.

This is a £4bn catalyst benefiting over 150,000 businesses, and consumers everywhere - all helping to protect 2.4 million jobs. #PlanForJobs pic.twitter.com/B9LKptz4Qy

— Rishi Sunak (@RishiSunak) July 8, 2020

And it is claimed this will save households around £160 per year on average and, together with the Eat Out to Help Out Scheme, will support more than 2.4 million staff working at more than 150,000 businesses, helping them recover and reopen after the Covid-19 lockdown.

Who will benefit from this?

The move will benefit accommodation in hotels, B&Bs, campsites and caravan sites, while attractions such as cinemas, theme parks and zoos will also see the tax cut.

Mr Sunak said: “This is a £4 billion catalyst for the hospitality and tourism sectors, benefiting over 150,000 businesses, and consumers everywhere – all helping to protect 2.4 million jobs.”