Local authority education catering services across the UK are facing one of the most challenging periods in their history. Rising food and labour costs, increasing regulatory demands, and a growing gap between Government funding and the real cost of delivering nutritious, compliant school meals have combined to place unprecedented pressure on council run provision.
In this article I look at our latest survey data and evidence from roundtable of our expert panel to look at the current state of the sector.
Across England, Scotland and Wales, local authority caterers report sustained cost increases, rising demand and growing complexity in service delivery. Most significantly, they highlight a widening disparity between the funding available for school meals and the actual cost of providing meals that meet nutritional standards, accommodate special dietary requirements and deliver wider public value.
However, many council caterers play a broader role within their communities, with 65% of respondents delivering breakfast clubs, while half also provide civic catering. Some also support leisure centres, care homes, luncheon clubs and community venues.
This highlights the strategic importance of local authority catering. It is not solely about feeding children, but about supporting wider health, wellbeing and social outcomes. In many councils, catering teams have been instrumental in tackling food poverty, supporting vulnerable residents during the cost of living crisis, and sustaining local supply chains.
Despite this, financial pressure, organisational change and uncertainty about long term sustainability have led many councils to reassess how catering is delivered. Over a third (35%) of survey respondents have undertaken a service review recently, a further 15% have done so within the last three years, while 10% plan a review in the next two years.
Respondents have identified a consistent set of drivers behind decisions to review services. The most commonly were rising food and staffing costs, insufficient Government funding, and wider pressures on council budgets. Other factors include the challenge of maintaining consistent standards across diverse school estates, increasing demand for specialist diets, and growing competition from private contractors.
Financial pressures were the most significant trigger for review. Over 61% of respondents say their current financial position directly prompted a review, while 55.6% highlighted the underlying cost of providing the service. In England, these pressures are exacerbated by fragmented school governance and the absence of ringfenced funding for school meals.
In some cases, reviews have resulted in cost reduction plans or revised service models aimed at improving efficiency. In others, they have led to partial or complete withdrawal from education catering.
Several English councils reported that long standing in house catering services have been deemed financially unviable under current funding arrangements. This has led to decisions to outsource provision, transfer services to external operators, or cease local authority catering altogether.
Money is the biggest concern, with 85% of those surveyed stating that Government funding does not meet the real cost of providing a school meal. Food inflation and workforce costs were identified by 90% of respondents as major challenges, reflecting the combined impact of rising food prices, pay awards and changes to National Insurance contributions.
In England in particular, the lack of ringfencing means funding intended for school meals is often absorbed by wider school budget pressures. As a result, caterers may not receive the full level of funding theoretically available.
Another pressure highlighted by the survey is the rapid growth in the number and complexity of special dietary requirements, with 60% of respondents reporting an increase in special diets over the past two years. While a quarter of respondents reported a decrease, the overall trend is clear, specialist dietary provision is becoming a core element of school catering.
Catering for allergies, medical conditions, cultural and ethical diets requires additional staffing, training, menu development and quality assurance. It also increases ingredient costs and administrative workload. Respondents consistently reported that these pressures place further strain on already stretched budgets, and several called for dedicated funding to support special diets.
Other respondents raised broader structural and policy issues affecting service sustainability. In Scotland, commitments to local food sourcing and increasingly complex regulatory requirements were reported to require additional investment to deliver effectively and they are not always matched by adequate funding.
Workforce challenges persist, with reduced pay differentials between supervisory and cook roles making it harder to recruit, retain and motivate skilled staff.
Respondents also highlighted a lack of understanding among schools about the long term implications of transferring catering services to private providers. Decisions driven by short term cost considerations may overlook wider impacts on quality, access, resilience and public value.
The cumulative effect of these pressures has been a significant wave of local authority withdrawal from education catering in England. Several councils have already ceased, or announced plans to end, their in house school meals services. As councils exit the market, provision is increasingly consolidated among a small number of large, for profit providers.
Local authority caterers identified several risks associated with council withdrawal. Small, rural and less commercially attractive schools may struggle to secure provision. There is also a risk of increased inequality, particularly for vulnerable children who rely most heavily on consistent and affordable school meals.
The loss of public value was a recurring concern. Local authority catering supports local procurement, fair employment practices, environmental sustainability and alignment with public health priorities. Fragmented provision by private operators may prioritise commercial returns at the expense of these wider social, economic and environmental benefits.
There are also longer term strategic implications. As councils exit and in house capacity is lost, the ability to reinstate public provision becomes severely limited. Skills, expertise and infrastructure are eroded, making future recovery under different policy conditions difficult, if not impossible.
APSE’s analysis reinforces that local authority catering delivers far more than meals. It contributes to improved health, wellbeing and social outcomes, and has played a vital role in supporting families through the cost of living crisis.
The future of local authority education catering will depend on policy decisions taken in the near term and APSE continues to advocate for funding reform, strengthened national standards and greater recognition of the role school meals play in supporting children, families and communities.