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LACA survey finds 80% of caterers say free school meals funding is inadequate

28 Apr 2025
LACA has released the findings of their March 2025 survey, revealing the severe financial strain facing school meal providers across the UK.

Rising food prices, increased labour costs and National Insurance contributions are pushing the school catering workforce to ‘breaking point’.

The March survey shows that 80% of caterers believe current free school meal funding is inadequate. Of these, 43% report a shortfall of between 50p and £1 per meal, while 18% say the funding falls short by up to £2.

Over half of caterers (53%) have already reduced staff hours, and 35% have cut jobs – with some reporting losses of up to 200 roles.

If funding does not increase, 56% of providers expect to cut more hours and 40% anticipate further job losses within the next 12 months. Alarmingly, 90% say these reductions are likely within the year unless urgent action is taken.

The financial pressures are also taking a toll on the quality of food being served. In the past year, caterers have introduced cost-cutting measures:

  • 81% have modified menus
  • 37% reduced meal options
  • 32% have resorted to using lower-quality ingredients

According to the survey, 61% of caterers have raised prices for paid meals, with 91% increasing costs by up to 50p. Some providers have also had to introduce more processed or pre-prepared food to manage costs

If funding remains at current levels, 64% of caterers warn they will be unable to meet the School Food Standards, with 94% predicting this will happen within a year.

LACA is calling on the Government to act now. The school meals organisation is asking for funding to be increased to at least £3.16 per meal to prevent further job losses, protect food quality and ensure every child continues to receive a hot, healthy school lunch.