Universal Infant Free School Meals

Janet Daby Excerpts

Tuesday 25th April 2023 Westminster Hall

[Steve Brine]

That is the point of today’s debate. I will supplement the figures that the hon. Lady gave in one moment. We have slightly digressed, and now we are back on subject. I am told that the impact of food inflation has already resulted in some pupils being forced to accept smaller lunches with potentially lower nutritional value, and in some cases schools have opted to offer only packed lunches because of the cost of the energy needed to produce lunches. Some wholesalers have reported that they are reducing portion sizes; thinner sliced ham in baguettes and reduced meat content in sausages are two examples. That should worry all of us.

[Janet Daby (Lewisham East) (Lab)]

I am grateful to the hon. Member for making such significant points on this issue. As somebody who used to receive free school meals, and coming from a constituency where a high number of children receive free school meals, I really understand the importance of a good-quality meal. Does he agree that the Government must really look at all avenues to try to avert this serious shortfall in covering the price of school meals?

[Steve Brine]

Yes, and I will come on to my asks. One that I was not going to cover, but will, is the discrepancy between the amount we pay for the universal infant entitlement and the amount we pay for those who are entitled to free school meals through circumstances. There is a curious difference. Why does the one meal rate one amount, and the other a different amount? I know that the chair of the APPG, the hon. Member for Washington and Sunderland West, certainly recognises that.

The Institute for Fiscal Studies recently published its report on the costings of free school meals. I am not sure if the Minister saw its work, but it found that if the price per meal had risen with inflation since 2014, it would be £2.87 today. That is a few pence lower than the figure mentioned by the chair of the APPG, but it is clearly still a big jump from the current £2.41.

The Local Authority Caterers Association has in its membership over 300 local authorities, as well as contract caterers, catering managers, and kitchen and school staff, which means that some 80% of school food is provided by its members. It told me that without change, the future of the sector is, in its word, “bleak”. In March, it published its “If not now, when?” mission, which calls on the Government to reform school meal funding, address inflationary pressures, and commit to ongoing reviews that make adjustment for inflation. I echo that as my first ask this morning, and this is why: one school in my constituency—I will not name any of them, to respect their wishes—receives £2.41 per child, yet as of October last year, it pays £2.80 per child, per school meal, to the main provider in Hampshire. It told me that it had to subsidise meals with around £4,700 from the school budget between November 2022 and the end of the financial year, which has just passed.

Another small rural school in my constituency reported a total shortfall this financial year of £3,150. These do not sound like big figures, but the metric goes up: the bigger the school, the bigger the numbers. When there are very tight budgets—which, of course, they have—they can be tipped into a deficit situation.

--- Later in debate ---

[Nick Gibb]

One reason why the number of children eligible for benefits-related free school meals has risen from 1.7 million to 1.9 million is the protections we put in place as families move on to universal credit.

I know that, along with transport costs, increased staff costs have also affected the industry, primarily linked to rises in the national minimum wage. We continue to review funding in order to ensure that schools can provide healthy and nutritious meals.

[Janet Daby]

This is a very serious point that affects children across our constituencies. The Minister says that the Government are reviewing it, but how long it will take for them to do so and when we will get some of the decisions we seek?

[Nick Gibb]

Of course, we keep all the issues under review and continually look at school funding. We look at the composition of the national funding formula in great detail every year; we are doing so now for the following year.

The funding for the free school meal factor in the national funding formula is increasing by 2.4% for 2023-24 in line with the latest available GDP deflator forecast when the 2023-24 national funding formula was published in July of last year. As a result of the significant extra school funding awarded by the Chancellor in the autumn statement, schools will receive an additional £2 billion in each of the ’23-24 and ’24-25 academic years.

The core schools budget, which covers schools’ day-to-day running costs, including their energy bills and the costs of providing income-related free school meals, rose from £49.8 billion in ’21-22 to £53.8 billion the year after, and will continue to rise to £57.3 billion in ’23-24 and £58.8 billion in ’24-25. By ’24-25, funding per pupil will have risen to its highest ever level in real terms. Those increases provide support to schools to deal with the impact of inflation on their budgets.

We spend about £600 million a year ensuring that an additional 1.25 million infants enjoy a free, healthy and nutritious meal at lunchtime. Combined with around 1.9 million pupils who are eligible for and claim a meal through benefits-related free school meals, this accounts for more than one third of all pupils in school, compared with 2010, when one sixth of pupils were eligible for free school meals. The Government also support a further 90,000 disadvantaged further education students with a free meal at lunchtime.

All children in reception, year 1 and year 2 in England’s state-funded schools receive a free meal, and have done since the introduction of the policy in 2014. Schools up and down the country offer free meals to their infant pupils, helping to improve children’s education, boost their health and save parents around £400 a year. Universal infant free school meals are funded through a direct grant to schools. To recognise the pressures facing schools, last June we announced an £18 million increase to the per-pupil funding rate for universal infant free school meals to support costs of food, transport and staff wages. That increased rate was backdated to April in recognition of those costs.

We understand the issues that are being raised and acknowledge that factors such as transport costs and the cost of living wage affecting catering workers are having an impact on the amount that can be spent on infant meals in schools. The Government take on board the comments regarding a discrepancy between the funding rate attributed to universal infant free school meals when compared to the rate provided for those pupils in receipt of benefits-related free school meals. The rate of funding for UIFSM is regularly reviewed, and I can assure my hon. Friend the Member for Winchester and all other hon. Members taking part in this debate that I am actively looking at this area. All school meals provided under universal infant free school meals are required to adhere to the school food standards, which require school caterers to serve healthy and nutritious food and drinks to ensure that children get the energy and nutrition that they need across the school day.

In recognition of cost pressures on core schools funding, including benefits-related free schools meals, we have already distributed additional funding through a schools supplementary grant. As a result, core schools funding for mainstream schools increased by £2.5 billion in the 2022-23 financial year, compared with the previous year.

It is right that individual schools determine their own budgets for meal provision by taking into account funding received centrally alongside funding for meals paid for by parents. We expect schools to enter into supply contracts accordingly. While the Government set the legal requirements for food provision and standards, we do not set the contract price, which is subject to agreement between schools and the suppliers.