Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential merits of recognising the provision of dementia care to individuals as a qualifying disability service for VAT exemption.

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

More generally, VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s second largest tax, forecast to raise £180 billion in 2025/26. Exceptions to the standard rate have always been limited and balanced against affordability considerations.