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March 2026 - Education

Recent research reveals the increasing challenges faced by most council-led school meal providers as they strive to remain financially sustainable while offering cost-effective, nutritious meals. The study also shows that a third (35%) of councils are currently reviewing their catering services due to financial pressures, rising demand, and a lack of long-term funding solutions.

The report by the Association for Public Service Excellence (APSE) is based on a UK-wide survey conducted by the organisation between December 2025 and January 2026.  Local authority catering teams in England, Scotland and Wales were asked a series of questions designed to understand their current financial pressures and operational experiences. APSE also hosted a roundtable discussion in January 2026 to supplement the survey findings.

The data reveals that more than four-fifths (85%) of respondents believe that current government funding is inadequate, particularly in light of the cost of providing the service as well as a lack of dedicated funding. This issue is especially evident in English schools, where funding for school meals is not protected and can be redirected to address other financial shortfalls within the schools. Furthermore, nine out of ten (90%) local authority caterers express that increasing operational costs are a major concern. They highlight that food inflation presents a significant challenge, making it increasingly difficult to maintain quality within existing budgets. The same percentage of caterers also reports that rising workforce costs, including increased wages and National Insurance contributions, add to these challenges.

Local authority caterers are also encountering increasing pressure due to the rising demand for special diets, with nearly two-thirds (60%) reporting an overall rise in special diet requests. This often necessitates additional staff time, training, menu development, and modified ingredients, all of which add financial strain to already tight budgets.

Due to these ongoing financial and operational challenges, several local authorities in England have either already closed their school meal services or are in the process of outsourcing them to private contractors. The report warns that the withdrawal of local authorities poses a significant risk to the quality, equity, and accessibility of school meal services.

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