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This ‘managed outsource’ arrangement would see the local authority purchase and manage the supply of meals from providers on behalf of schools and nurseries who subscribe to this service. The recommendation is to move to this new arrangement by the end of March 2026. 

The council says this would potentially support schools and families to pay a lower price for school meals - particularly important given the ongoing cost-of-living pressures. Local authorities are not legally required to run their own catering services.

A Hampshire County Council spokesperson said: “In recent years, the school meal industry has seen a significant rise in food and staff costs. The Government funding provided to schools for the purchase of school meals has not kept pace with these increases.

“To cover its own costs, the local authority has therefore needed to increase the price of its school meals above the Government funding rate received by schools, placing added burden on school budgets. As private providers have lower operating costs, they are generally able to charge lower prices than the County Council’s Education Catering service, providing a more attractive option for both schools, and families who pay for school meals.

“With the County Council continuing to face significant and well documented budget pressures, the move to a managed outsource arrangement would also enable it to exit a market in which it can no longer afford to compete.”

This proposed change is due to be considered by Councillor Steve Forster, the County Council’s Cabinet Member for Education, at his public Decision Day meeting on Friday 6th December. Whatever the outcome of his decision, school meals will continue to be available to all children across Hampshire, including those eligible for free school meals.

This recommendation is based on feedback received during a recent five-week consultation with schools and nurseries who currently use the Education Catering service, which found that 73% of respondents (180 in total) would potentially be interested in joining such an arrangement.

It also responds to various concerns raised during the consultation, including the potential difficulty that certain schools might face in finding a suitable provider, and the added challenges that schools would generally experience as a result of managing their own arrangements.

The council spokesperson added: “Should the recommendation be agreed, the majority of staff currently working in the Education Catering service would be expected to transfer to the new catering suppliers contracted under the managed outsource arrangement, in line with national employment legislation. Schools would be closely supported in transitioning to their new providers.”