The organisation, which represents the school food sector, warns that the current funding model is placing unsustainable pressure on schools and caterers, with several providers already announcing they will withdraw from the sector.
School meal funding in England has increased by just 5p per meal since 2020, despite ‘significant’ increases in food, energy and labour costs. Schools are now subsidising free meal provision by around £10,000 per year on average to maintain standards, diverting money away from already stretched education budgets.
Six school catering providers, including four local authority services, have announced they will cease operating at the end of the current academic year, forcing some schools to bring catering services in-house or re-tender provision at short notice.
The School Food People says the situation is becoming more ‘urgent’ ahead of September, when free school meals will be extended to all children whose parents receive Universal Credit.
Schools and caterers still lack clarity on how many additional pupils will become eligible or whether capital funding will be available to support the expansion of kitchens and staffing. The School Food People say the funding rate in England is now significantly lower than elsewhere in the UK.
For the 2026/27 academic year the rate will rise by just 2% - from £2.61 to £2.66 per meal - a figure that must cover both food and labour costs. This compares with £3.40 in Wales, £3.30 in Scotland and £3.00 in London, where additional mayoral support is provided.
The organisation is calling on the Government to increase the funding rate to at least £3.45 per meal and to index-link future increases to inflation in order to ensure the long-term sustainability of the school food system.
Without action, they warn that schools will continue to subsidise meals from education budgets, increasing financial pressure and risking growing instability across the sector.
Brad Pearce, national chair of The School Food People, commented: “The school food sector is under acute financial pressure. Six school catering providers have already announced they will cease operating.
“That is deeply concerning for the workforce and the communities they serve, but it also has immediate consequences for schools. When a caterer withdraws, schools are forced to bring provision in-house or re-tender at short notice, often at higher cost and with significant operational disruption.
“Schools have a statutory duty to provide a free school meal. Yet in England the funding rate will rise to just £2.66 per meal in 2026/27, a figure that must cover food and labour. When that does not meet the true cost, the shortfall must be absorbed from already stretched education budgets.
“Free school meals will be extended to all children whose parents receive Universal Credit in September. The School Food People support this initiative, we want as many children as possible to have access to a hot, healthy meal. However, there has been no confirmation on how many pupils will be entitled, nor whether capital funding will be provided so schools are able to meet the demand.
“School caterers are being asked to deliver more, to more children, on a rate that does not reflect sustained increases in food and staffing costs. We are calling for the per-meal rate to increase to at least £3.45 and to be index-linked going forward, so that provision is financially sustainable and every child can rely on a consistent, nutritious meal.”