(2 years, 4 months ago)
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I hear what the hon. Gentleman says, and I will continue to look at European and other comparators, and at eligibility.
In relation to what the hon. Gentleman—and, indeed, the hon. Member for South Shields—proposes as an in-work and out-of-work benefit, it is important to reference the fact of those on universal credit having that £7,400 earnings threshold. There will be people whose income exceeds £40,000 a year. I know there are people struggling across the country, even on what many would consider a reasonable income, because there is an inflationary shock for many people, and they have outgoings that reflect their earnings.
I will come to that, but while it is right that those families continue to receive a small amount of universal credit, which tapers as their earnings increase, not least to encourage and incentivise work, we have to recognise more broadly—notwithstanding the current inflationary pressures and cost of living pressures—that these are not the most disadvantaged households, which we want to target, or arguably should target, with support in this specific way.
That does not mean we should not be helping those people with specific, targeted support in other ways, which I will come to, but extending free school meal eligibility to all families on universal credit would, without question, carry a significant financial cost—one that I think would be much higher than that which the hon. Member for South Shields has referenced, although we can discuss that another day. It would quickly run into billions of pounds over a spending review and result in around half of all pupils becoming eligible for a free meal, which would have substantial knock-on effects for the affordability of linked provision—for example, the pupil premium, which is linked to eligibility for free school meals.
Having said all that, I understand and appreciate—I have a constituency myself and I speak with people every weekend—that many families are finding it tough, given the global inflationary pressures that affect the cost of living. The question is whether a permanent change to the eligibility criteria for free school meals is the right thing to do now—whether it is affordable and sufficiently targeted, and whether it could be delivered quickly enough if we wanted to operationalise it. My answer to all those points at the moment is no. As I say, the Government understand the pressures people face with the cost of living. These are global challenges, and that is why the Government are providing over £15 billion of further support, targeted particularly at those with the greatest need. We should not forget that this package is in addition to the over £22 billion that was announced previously, with Government support for the cost of living over the course of this year totalling over £37 billion.
The Minister says his answer is no. In Manchester, Gorton, a survey has shown that 80% of families are cutting back on food. Does he not agree that every young child deserves a good start in life and that food is one of the basics?
Of course, I agree. I do not want to see any child in this country going hungry or a single family in poverty. The hon. Gentleman raised support for councils in his intervention on the hon. Member for South Shields, and that is important. I referenced the £37 billion. I am biased because I originally set up the covid winter grant scheme, which has turned into the household support fund, and I am proud of the support it has provided to councils. That £37 billion includes an additional £500 million to help households with food and essential items. That is on top of what we have already provided since October 2021, and brings total funding for the household support fund to £1.5 billion. We did so because I genuinely believe that local authorities know their communities and those who are in need best and how to target them. There is another £421 million of additional support, which will run until March next year, with the devolved Administrations receiving an extra £79 million.
Let me turn to funding, which the hon. Lady also raised. In order to deliver the free school meal provision, we have increased the core funding for schools with the FSM factor—that is a bit of a mouthful—in the national funding formula. It has increased to £470 per eligible pupil this year to recognise rising inflation and the associated cost pressures, and from speaking with the sector and knowing the challenge that schools face. That was after the NFF rates were set, and we provided core funding through a schools supplementary grant. As a result, core mainstream schools funding will increase by £2.5 billion in 2022-23 compared with last year.
As I say, we already spend around £600 million on universal infant free school meals each year. The per meal rate, which I referenced earlier, was increased to £2.41, because I recognised that that needed to be done, and importantly I backdated that to 1 April this year, which represents an extra £18 million, in recognition of recent cost pressures.