Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the effect on women's income of excluding reusable sanitary underwear from the new zero rate of VAT.

A zero rate of VAT has applied to women’s sanitary products since 1 January 2021. This applies to those products which were previously subject to the reduced rate of 5 per cent, for example, tampons and pads, and to reusable menstrual products, such as keepers.

The relief specifically excludes articles of clothing, such as “period pants”. Such exclusions are designed to ensure that the relief is properly targeted, since difficulties in policing the scope of the relief create the potential for litigation, erosion of the tax base and a reduction in revenue. Under existing rules “period pants” may already qualify for the zero rate, if they have been specifically designed to be worn by a child, meet the sizing criteria, and are held out for sale specifically for use by girls under the age of 14 years old.

Details are provided in VAT Notice 714: zero-rating young children's clothing and footwear: https://www.gov.uk/government/publications/vat-notice-714-zero-rating-young-childrens-clothing-and-footwear/vat-notice-714-zero-rating-young-childrens-clothing-and-footwear#items-suitable-only-for-young-children.

The Treasury, along with other relevant departments, carefully considers the impact of its decisions on those sharing protected characteristics, including at Budgets and other fiscal events, in line with both its legal obligations and with its commitment to promoting fairness.