Dairy UK, a milk industry association, has written to 21,000 schools urging them to take up the European subsidy, which works out at 3p for every 14p carton of milk paid for by parents.
Spokesman Edmund Proffitt said uptake of the subsidy ranged from 95 per cent in areas like Liverpool to 0.5 per cent in others, and that the subsidy amounted to around 10m a year.
More than 3,000 schools had expressed an interest in the subsidy handled by the Government's Rural Payments Agency. Primary schools should contact their local education authorities, he added.
Dairy UK and non-departmental government body the Milk Development Council launched the awareness campaign during School Milk Week last week, which involved milk handouts to 12,500 children in 50 schools.
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