How Sunak’s half-price dining out scheme will work

The scheme will cost £500m, the Treasury says. At £10 each, that works out to be at least 50 million meals Shares in pub companies fell when Mr Sunak made clear that the scheme did not cover alcoholic drinks

MILLIONS of Britons will be able to eat for half price at restaurants, bars and cafés as many times as they like under a scheme announced by Rishi Sunak yesterday.

The Chancellor’s Eat Out To Help Out scheme will see customers at pubs, bars, restaurants and cafés get 50 per cent off their meals up to a maximum value of £10 per head on Mondays, Tuesdays and Wednesdays next month.

Announcing the unprecedented plans, part of a £30billion package to rescue the hospitality sector from a coronavirus-induced recession, Mr Sunak, said: “This moment is unique. We need to be creative.”

The Chancellor said his plan was aimed at getting “customers back into restaurants, cafes and pubs” and protecting “the 1.8 million people who work in them”.

Officials at the Treasury looked at a food vouchers scheme but eventually decided it was simpler to make it available to anyone who eats in a restaurant that has registered for the programme.

How will the Eat Out To Help Out scheme work?

Everyone who buys a meal for immediate consumption at a restaurant or a café will get 50 per cent off their bill – up to a maximum £10 for each person, including children, on Mondays, Tuesdays and Wednesdays next month.

Who will benefit?

Around 129,000 businesses, employing 1.8 million people, can sign up. Crucially, this includes pubs – of which 90 per cent serve food – restaurants and cafes. The same team that set up and ran the Government’s furlough scheme has been deployed by HM Revenue and Customs to run this programme.

When does it start and end?

The scheme starts on Monday Aug 3 and runs until Monday Aug 31. Companies can start to register on the Government’s gov.uk website from Monday of next week.

How much will it cost?

The Treasury says it will cost £500 million. At a maximum of £10 each, that would be at least 50million meals, but one official admitted: “That is an estimate – let’s see.” This is because officials do not know how large the appetite will be. The average household in the UK spends £19.40 on café and restaurant meals each week.

How will restaurants get paid?

Businesses that have registered for the scheme will be able to submit claims for 50 per cent of their bills at the end of each week and then will receive the cash from the Government within five days.

Why only in August?

The Treasury wants to help restaurants and bars that are struggling to get back on to their feet through July as the lockdown eases, after like-for-like spending in restaurants in May was down by 65 per cent.

The scheme – like other measures – is always kept under review and so could be extended beyond the end of next month, although there are no plans for this at present.

Why does the discount only apply on Mondays, Tuesdays and Wednesdays?

The beginning of the week is traditionally the quietest period for eating out, where there is most to be gained from the public money, the Treasury said.

Why are only restaurants, cafes, pubs and bars benefiting?

The hospitality sector has a workforce that is “disproportionately young, female, BAME [black, Asian and minority ethnic], work part-time and are at the lower end of the income scale”, Treasury sources said, adding: “These are the people who need it most.”

Does it cover alcohol?

No. Businesses that take part can only claim for the cost of meals and soft drinks. Shares in pub companies fell when Mr Sunak made clear that the scheme did not cover alcoholic drinks.

Can I register if I set up a restaurant from home and invite paying customers?

Probably not – any participating res

taurant must be already approved by the Food Standards Agency.

Can I buy breakfast, lunch and dinner?

Yes. There is no limit on the number of meals that fall under the scheme. A diner can get a discount of 50 per cent or a reduction of £10 per meal per visit. One official said the Treasury “did not want to put a limit” on how people want to support jobs in their area.

Will shops that put chairs outside be able to apply?

Yes. The discount applies to any “eat in” meals that are consumed on the premises. The scheme covers hot or cold food.

Will the Treasury scrutinise my meal bill?

No. Officials have tried to keep it as simple as possible. The discount will be judged per head. So, if there are four diners the restaurant can knock £40 off an £80 bill. A £25 meal for two will be slashed to £15 because of the £10 cap per person. A Treasury source said: “We are not going to look to check who has eaten what.”

Can the scheme be used at restaurants that are already running other offers?

Guidance is being published next week but the Treasury expects most companies not to have to provide further discounts given that they are being paid to offer 50 per cent off deals.

Can children benefit?

Yes. There is no minimum or maximum age limit.

Can a restaurant refuse to pass on the discount?

No. The receipt will set out the discount so customers will benefit immediately and then the restaurant or pub will be able to claim back the money from the Government at the end of the week.

Will restaurants be able to put up their prices and still claim the discount?

There is nothing to stop companies putting up their prices and still claiming the discount from the Government, although the Treasury expects that customers might notice this form of price gouging and go to a different restaurant.

Can restaurants submit claims for customers who have not eaten there?

The Treasury says that HM Revenue and Customs will monitor the scheme for fraud, along with Trading Standards officials.