Consumers will no longer pay VAT on “essential and environmentally-friendly” period pants from today following a two-year campaign.
Women will save up to £2 on period pants on average – up to 16% – following the pledge to scrap the tax by Chancellor Jeremy Hunt in the autumn statement 2023.
It follows a campaign by brands, retailers, women’s groups and environmentalists dating back to 2021, when the so-called “tampon tax” was dropped from other period products such as pads, tampons and menstrual cups.
However, a 20% tax on period pants, which are designed to be worn as an alternative to using tampons and sanitary towels, continued as they were classified as garments.
Retailers including Marks & Spencer and the brand Wuka were among about 50 signatories of a letter to the Treasury in August, which urged the Government to remove VAT on period pants.
In the letter, they pledged to pass on any tax cut straight to customers, “so they feel the benefit of the cost saving immediately”.
The letter added that period pants “have the power to reduce plastic pollution and waste”, and could save people money in the long term, but added that “one of the main barriers to switching to period pants is cost”.
A number of retailers, including Tesco, John Lewis and M&S, later announced they would cover the cost of VAT on period pants.
M&S has estimated that the cost of the VAT exemption would be 55p a year for a UK household with an average income – about the price of a pint of milk.
Financial Secretary to the Treasury, Nigel Huddleston, 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.”
Victoria McKenzie-Gould, corporate affairs director at M&S, 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, brands 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.”
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.”
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