Free school meals 'generate £90m a year of benefits'

Currently, all children in the first three years of school receive a free lunch. The scheme was introduced in September 2014. Department for Education figures show that 1.9m children in English state-funded primary schools were eligible as of January 2016.

A study of the impact of free school meals by the Education Policy Institute (EPI) estimates the cost of universal free school meals will be outweighed by their "consumer benefits" to the tune of £887m over the next 10 years - or £88.7m a year.

The Conservatives revealed plans to scrap universal free school meals, ahead of last year's general election in order to save £650m, but decided not to follow through with the move.

The report reveals that, based on the findings of a survey, 29 per cent of school leaders identified an improvement in pupils' readiness for learning as a result of universal free school meals.

Meanwhile, 39 per cent of teachers thought attainment and progress in class improved, 36 per cent felt the ability to complete desk-based activities improved; and 36 per cent felt that the ability to concentrate, and not getting distracted improved, with none reporting a deterioration.

The majority of parents responding to the online survey felt that educational outcomes had stayed the same since the introduction of universal free school meals, but 22 per cent of parents responding to the survey noted that achievement at school, attention span and a child's ability to concentrate had all improved in the last three years.

The report also found that a lack of adequate government investment in the provision of free school meals is resulting in financial problems for some primary schools.

It found that since the legal duty came into force in 2014 there has been an eight percentage point increase in the number of primary schools now running their school lunch provision at a loss. Prior to the implementation of the duty 18 per cent were reporting a deficit, this has increased to 26 per cent after 2014.

Additional staffing, the rising cost of food and the administrative burden involved are among extra costs schools are increasingly struggling to meet.

Low funding rates are a key factor, the report said, adding that unless these are increased, the financial problems schools face could worsen.

The report said that if the current funding rate is held at £2.30 per meal, by 2023/24 the policy will leave schools facing a total £109m bill to meet the duty. 

The high cost of contract catering, for those who are unable to provide it in-house, is another factor in the mounting debt problem. The largest increase in those reporting a deficit is among those with council catering contracts.

Meanwhile, the largest increase in schools reporting that they were making a profit by providing a universal meal service is among schools with their own catering service.

"A small proportion of schools have seen an increase in deficits in school meal provision, and on reasonable assumptions of future cost inflation the current funding rates applied by the Department for Education are likely to become insufficient," the report states.

"Under this scenario, the net costs to schools, and the existing impacts on wider curriculum delivery and school staff time, will be increased, potentially undermining wider benefits that might be realised."

Benefits highlighted in the report include the time and money it saves parents in not having to make packed lunches. The duty saves families an average of 50 minutes and £10 a week.

It has also helped wider school efforts to promote healthy eating among parents and pupils. Among head teachers surveyed, 41 per cent reported that the profile of healthy eating had improved as a direct result of the free lunch initiative.

Another concern raised is that the free school meal policy is leading to a decrease in families registering for pupil premium funding. Of head teachers surveyed, 31 per cent said that take-up of free school meals for pupil premium purposes had fallen, while 38 per cent reported it had stayed the same and 15 per cent that it had increased.

The EPI has called on government to make sure that parents are able to easily register for pupil premium funding, in particular in light of the roll of out of universal credit.

In November last year, the government estimated that around 50,000 more children could be entitled to free school meals due to a change in the eligibility criteria linked with universal credit.

"While it is too early to detect whether the policy has had an impact on educational and health outcomes, some schools and parents have perceived benefits for children's readiness for learning, the profile of healthy eating in schools, and children's eating habits," said EPI chief economist Peter Sellen.

"However, not all schools have reported this, and considering the high public cost of the policy it is important that they and their caterers can deliver school lunches in a cost-effective way that supports education and health. The variety of approaches being taken suggests there may be room for some to learn from the experiences of others.

"The government should ensure the policy does not create an increasing financial risk to schools in the face of potential cost inflation, and should consider how to ensure pupils who are eligible are registered for the pupil premium."