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Olive Dining CEO claims inflation & underfunding putting school meals at risk

09 Sep 2025
Stephanie Spratt, co-founder and chief executive of education catering specialist Olive Dining, responds to the recent news around the rise in school meal costs being passed on to parents.

It’s worrying news that parents in England are having to pay more for school meals as the new academic term begins. But sadly, caterers have been left with little choice but to increase costs.

Rising food inflation paired with increases to National Insurance contributions, the National Living Wage and pensions are wreaking havoc with budgets, putting catering companies under significant strain.

As of July this year, food inflation is sitting at 4.9% according to the Office for National Statistics, which is a huge concern for caterers trying to provide high quality, nutritious meals for children up and down the country.

Schools are struggling with tight budgets as it is, so this extra pressure means they have little choice but to pass these costs onto parents. This decision is never made lightly, and we’re all too aware that many families are in a difficult position financially.

In regions where large numbers of children receive free school meals, such as London, these extra costs haven’t been passed onto parents. But caterers are still battling against consistent underfunding alongside these increasing cost pressures.

Earlier this year, the Department for Education announced that funding for universal infant free school meals will rise from £2.58 to £2.61 per child this September – a meagre 3p increase.

This simply isn’t enough to provide children with the high-quality, nutrient-rich school meals they deserve to grow, develop, and learn at their best. Worryingly, 34% of caterers have considered using more unhealthy processed foods in school menus due to these mounting challenges, according to LACA.

If caterers are to remain viable and provide decent meals for children at school, LACA advises that the Government needs to provide them with an additional £3.30 per head – a substantially higher figure than the budget they are currently working with.

The health of our children and young people isn’t up for debate, and the Government needs to take the issue of increasing costs seriously. If education caterers are to stay in business and support the mental and physical wellbeing of students across the UK, they need real support.