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Study finds free school meals could cost schools over £310m per year

09 Oct 2025
A new report by Northumbia University has found that schools across England face an annual shortfall of £310m in covering the cost of free school meals unless ‘urgent action’ is taken to reform the national school meals funding system.

The Government announced changes to the eligibility criteria for means-tested free school meals. All pupils from households in receipt of Universal Credit would benefit from free school meals – over 600,000 children according to Government predictions.

A new analysis of Department for Education data has found that state-funded primary and secondary schools in England could be left needing to find between £11,000 and £25,000 per year from their individual teaching and learning budgets to ‘top up’ the costs of free school meals during the 2026/27 academic year. This is equivalent to the cost of over 7,700 teachers’ salaries.

The Government currently awards all state funded schools in England £2.58 per free school meal child to cover the cost of providing a meal each day, with an increase to £2.61 due in the 2025/2026 academic year.

Caterers face sharply rising costs and are charging schools an average of £3 per meal, a rate they say is below the real cost of providing a meal that adheres to national School Food Standards.

Researchers from Northumbria and Lincoln universities and Alliance4Children modelled the financial impact of providing free school meals to those children already receiving them and the additional recipients on the budgets of state-funded primary and secondary schools using open data from the Department for Education.

Their modelling indicates that individual primary schools would have to find an average of £11,708 from their budgets in 2026/27, with secondary schools needing to find an average of £25,565. Schools in the most disadvantaged areas with higher proportions of pupils receiving free school meals would be hardest hit.

The modelling estimates that primary and secondary schools in the North West would have a combined shortfall of £45.5m in 2026/27; with the West Midlands facing a shortfall of £38.3m and the South East facing a shortfall of £44.5m.

Professor Greta Defeyter OBE, director of the Healthy Living Lab and dean for Social Mobility Policy Engagement at Northumbria University explained: “Our findings are startling. Inflation, rising food prices and increases in national insurance have all impacted on the overall cost to caterers for providing free school meals and many schools are needing to take money from their own individual teaching and learning budgets to top-up the difference between the funding they receive from the Government and the amount they are charged by the caterer.

“When we modelled the data to include the additional pupils who will be entitled to receive free school meals in the future it is clear that this will lead to a national deficit of over £310m per year which schools are needing to fund – this is equivalent to the cost of employing over 7,700 teachers.

“We urge the Government to explore funding models and mechanisms that are more socially just to all schools and school caterers regardless of size and geographic location.”