Local authority catering services across the UK are continuing to navigate a period of significant change, driven by rising costs, increasing demand, workforce pressures, and evolving government policy.
The Association for Public Service Excellence (APSE) conducted its annual State of the Market survey between December 2025 and January 2026, gathering insights from councils across England, Scotland, and Wales.
The survey demonstrates that despite pressures across the public sector, school meals remain the core responsibility of local authority caterers, with 100% of respondents confirming they continue to provide them.
However, other areas of catering provision are showing notable decline. Civic catering has fallen to 31.58%, down from 46.51% in 2024, often due to staffing costs and the difficulty of making such events financially viable. Staff catering is also at a three year low of 21.05%, reflecting reduced demand as hybrid working becomes embedded.
Catering for after school clubs has likewise dropped sharply, with only 5.26% of respondents offering the service. Early years catering sits at around 50%, influenced by the expansion of free childcare hours, which has shifted provision patterns. Some councils, however, are diversifying into areas such as care homes, holiday programmes, and community cafés, signalling adaptive approaches to sustaining revenue.
The way catering services are structured within councils is also evolving. More authorities report operating catering as a standalone service, while the number embedded within central FM has fallen by over 27% since 2024. Some services sit under children’s services or wider operational departments, reflecting local organisational change.
Workload pressures remain acute. 77.78% of respondents expect their personal workload to rise in 2026, with 68.42% predicting increased pressure across the wider catering service. Recruitment and retention issues, reduced budgets, and policy changes—particularly around expanded eligibility for free school meals—are key drivers behind this upward trend.
Workforce issues continue to dominate conversations in the sector. Three quarters of councils now pay the Living Wage Foundation rate, with a further 5.56% planning to implement it shortly. Pay inflation arising from recent NJC agreements has pushed hourly rates for catering assistants upwards, with many now earning over £13 per hour for the first time.
While these pay increases support a fair wage for a predominantly female, part time workforce, they also intensify financial pressures within a service that must operate on tight margins and, in many cases, on trading accounts with schools.
Absence levels are another area of concern. Almost four fifths (78.92%) of respondents believe absence rates are ‘slightly above average’ or ‘too high’, continuing a rising trend over the last five years. Councils report growing cases of stress, mental health related absence, and delays caused by NHS waiting lists, compounding staffing shortages.
Training, however, remains strong. Over 95% of responding councils deliver regular training, and more than 70% hold annual staff appraisals, demonstrating an ongoing commitment to professional development even in difficult circumstances.
The cost of providing school meals continues to rise. The average price of a primary school meal has grown from £2.46 in 2024 to £2.71 in 2026, and secondary meals have risen to £2.89. Catering managers’ report reluctance to increase prices due to the strain on family budgets, yet escalating food and labour costs have left councils with little choice.
Staffing costs in particular stand out, with 100% of respondents citing them as the area experiencing the largest increases. Food inflation remains a significant issue too, with over 75% of respondents reporting food as a top cost pressure.
Councils are deploying a range of strategies to mitigate price increases. These include working more closely with suppliers (94.44%), increasing the use of seasonal produce, and in some cases introducing meat free days. Importantly, relatively few have resorted to reducing portion sizes or limiting menu options, reflecting an ongoing commitment to quality and nutrition.
With many councils’ adopting climate emergency declarations, sustainability continues to grow in importance. The majority of respondents (84.21%) report implementing more meat free days, and 89.47% purchase more local produce, both representing significant steps towards decarbonisation and cost control. These measures support net zero goals while offering opportunities to strengthen the financial sustainability of catering services.
Staff costs, allergen management, and funding pressures remain the most significant challenges facing the sector. Every respondent reported staffing costs as a key concern, and 94.44% cited the increasing complexity of catering for allergies and special diets. The widening gap between funding levels for free school meals and the true cost of provision is placing unprecedented strain on local authority caterers.
Despite these pressures, areas of growth exist. Selling catering services to other councils is becoming more common, with 41.18% identifying this as a growth opportunity. Early years catering is also expanding, and interest in cookery classes has increased. Yet financial constraints continue to limit the ability to invest in service expansion.
Conversely, reductions are anticipated in contracts with schools and academies, reflecting an ongoing trend as some councils withdraw from providing school meals altogether.
The 2026 survey highlights a sector under strain but also one committed to delivering high quality, nutritious meals to children and communities. Local authority catering services are facing a perfect storm of rising costs and workforce pressures, yet they remain a vital component of wider public service delivery, supporting health, wellbeing, and social value.
APSE continues to advocate for policy reform, arguing for an end to the marketisation of school meals and greater recognition of the essential role these services play. As councils navigate the challenges ahead, collaboration, innovation, and sustained investment will be critical to ensuring the long term viability of local authority catering across the UK.