A better childhood. For every child. www.childrenssociety.org.uk

A policy report on the future of free school meals

Contents

Acknowledgements

1. Introduction 3

2. Summary 4

3. CurrentprovisionoffreeschoolmealsinEngland 5

4. Whatimpactdothecurrentfreeschoolmealeligibilitycriteriahaveonfamilyfinancesandondecisionsaboutmovingintowork? 8

5. Families’viewsonfreeschoolmeals 10

6. Whatdoesthefutureoffreeschoolmealslooklike? 14

7. ExtendingfreeschoolmealstoallUniversalCreditrecipients 15

8. Conclusionandpolicyrecommendations 16

ManythankstoZeinaWhalleyandJoCleaverforhelpwithdesigningthesurveyoffamilyattitudestofreeschoolmeals,andtoMarshaLowe,CharliePowell(TheChildren’sFoodCampaign),JoWalker(TheSchoolFoodTrust),DevenGhalani(TheCentreforSocialJustice),NicolaMossandProfessorJanetWalkerforextremelyhelpfulcommentsonthereport.

This report was written by: Sam Royston, Laura Rodrigues and David Hounsell April 2012

1. Introduction

Freeschoolmeals(FSM)areacrucialentitlementforfamilieslivinginpoverty.Theyhelptoensurethatchildrenfromthelowestincomefamiliesgetanutritiousmealinthemiddleoftheday.

Aswellasprovidingvitalfinancialsupportforlowincomefamilies,FSMalsohaveimportanthealthandeducationalbenefitsforthechildrenthatreceivethem.1Evidenceshowsthateatingahealthyschoolmealimproveschildren’sconcentrationduringafternoonlessonsandcanhaveapositiveimpactonclassroombehaviour.2Nutritiousschoolmealsfordisadvantagedchildrencanalsohelpchildrentodevelophealthyeatinghabitsandhavethepotentialtodecreasehealthinequalities.

However,therearesignificantissueswiththecurrententitlementfor,anddeliveryof,FSM.ThelossofFSMentitlementonmovingintofulltimepaidworkmeansthatnearlyamillionchildreninpovertyinworkingfamiliesarenotentitledtothebenefit.Therearealsoongoingissuesaboutthestigmatisationofchildrenwhoreceivethem.

ThegovernmentisundertakingafundamentaloverhaulofthewelfaresystemwiththeintroductionofUniversalCredit,whichwillnecessitatesignificantchangestoFSMentitlement.ThispresentsauniqueopportunitytoimprovetheeligibilitycriteriaanddeliveryofFSMsothatprovisionisextendedtolowincomeworkingfamilies.Bydoingthisthegovernmentwouldbedeliveringonitsambitiontomakework‘pay’andincentiviseemploymentastherouteoutofpoverty.

MethodsThisreportdrawsonanumberofdifferentsourcestodeveloptheanalysisandresults.Theseinclude:

•Primarydata–includingdatafromHerMajesty’sRevenueandCustoms(HMRC),theDepartmentforEducation(DfE),andtheSchoolFoodTrust.ThesedataareusedtoestimatethenumbersofchildrenentitledtoFSMandthosewhotakeuptheirFSMentitlement,andtodevelopcostestimatesfortheextensionofFSMtoworkingfamiliesinreceiptofUniversalCredit.

•DatafromtheDepartmentforWorkandPensions(DWP)aboutincomedisregardsandwithdrawalrateswithintheUniversalCredit.TheseareusedtoassesstheimpactofdifferentFSMoptionsonhouseholdincomesundertheUniversalCredit.

•Anonlinesurveyof140UKparentswhoarecurrently,orhadrecently,beenentitledtoFSM(whethertheytookupthisentitlementornot).

Fair and square 3

2. Summary

Main findings:•InEngland,aboutathirdof

schoolagedchildrenlivinginpoverty3arenotentitledtoreceiveFSM–around700,000.

•Althoughentitled,afurther500,000donottakeuptheirmeals.Thismeansthatmorethanhalf(around1.2million)ofallschoolagedchildrenlivinginpovertyinEnglanddonotreceiveFSM.

•ThemainreasonthatsomanychildreninpovertyarenotentitledtoreceiveFSMisbecausetheirparentsareinwork.ThecurrenteligibilitycriteriaforFSMmeanthatparentsworking16ormorehoursperweek(24hoursforcouplesfromApril2012),losetheirentitlementtoFSM,nomatterhowlittletheyearn.

•FSMcanalsoleadtochildrenbeingentitledtoanumberofotherbenefits–suchasschoolclothingallowances,supportwithschooltrips,musiclessons,andaccesstoleisurecentres.Familiesinlowpaidworkmaythereforealsonotreceivetheseotherformsofsupport.

•OursurveyofparentsindicatesthatthelossofFSMisamajorworkdisincentiveforthem.Nearlyhalf(45%)ofparentsinfamiliesinreceiptofFSMareworried‘alot’aboutthefinancialimplicationsofthelossofFSMonmovingintoworkortakingonadditionalhours.Sixoutof10feltthatthishadanimpactontheirdecisionsaboutmovingintoworkortakingonadditionalhours.

•Anationallyrepresentativepollshowsthatmorethan90%ofpeoplebelievethatchildreninlowincome,workingfamiliesshouldbeentitledtoreceiveFSM(seeFigure7).

•TheintroductionoftheUniversalCreditpresentsawatershedmomentforthefutureofFSM.TheabolitionofkeybenefitscurrentlyusedforpassportingtoFSMentitlementsmeansthatacompletenewsystemofentitlementneedstobeputinplacebeforeOctober2013.ThisprovidesakeyopportunitytoextendFSMtoalllowincome,workingfamilies.

Policy recommendations:1. Thegovernmentshould

ensurethatallchildreninpovertyareentitledtoreceiveFSM,andpromoteworkincentives,byextendingFSMentitlementtoschoolchildreninfamiliesinreceiptofUniversalCredit.

2. Alllocalauthoritiesandschoolprovidersshouldintroducecashlesssystemsinordertode-stigmatisethereceiptofFSM.

3.Thegovernmentshouldreviewtheextenttowhichmaintainedschoolsandacademiesareadheringtothenutritionalstandardsforschoolfood,andwhethersecondaryschoolpupilswhotakeupFSMarereceivingenoughtobuyafullandnutritiousmeal,witharangeofchoicesavailablewithinbudget.

4 Fair and square

3. Current provision of free school meals in England

Current entitlement criteria InEngland,familieswithachildattendingastateschoolarenormallyentitledtoreceiveFSMiftheyareworkingunder16hoursperweek(fromApril2012,24hoursforcouples)andtheirincomeisunder£16,190.4

AsmallnumberoflocalauthoritieshavedecidedtoextendFSMbeyondthiseligibility.Forexample,IslingtonhasindependentlydecidedtomakeFSMavailabletoallnurseryandprimaryschoolchildren.5However,thenationalentitlementcriteriaruleoutlowincome,workingfamiliesfromreceivingFSM.

How many children receive FSM?Therearearound2.2millionstateschoolchildrenlivinginpoverty6inEngland.

Around1.5millionchildreninstateschoolsinEnglandmeettheeligibilitycriteriaforFSM,meaningthatthereareatleast700,000childreninpovertywhodonot.

However,notallofthosechildrenwhomeettheeligibilitycriteriahaveaFSMeveryday.Around200,000ofthesechildrenarenotregisteredforFSMwiththeirschool,andofthoseregistered,eachdayaroundafurther300,000donoteatthemeal.

Thereforeofthe2.2millionschoolchildrenlivinginpovertyinEnglandonly1millionreceiveFSM.Thismeansthateachdayatleast1.2millionchildreninpovertydonotgetFSM.7700,000ofthese(oraboutathirdofschoolchildreninpoverty)arenotentitledtoFSMatall(seeFigure1).

Calculating numbers of children who are and are not entitled to free school meals

•InJanuary2011therewerearound7.5millionchildrenandyoungpeopleinstatemaintainedschoolsinEngland.8

•AroundoneinfiveofthesechildrenareentitledtoFSM.9Thisequatestoaround1.5millionstateschoolchildreninEngland.

•Mostrecentlyavailablestatisticsindicatethataround1.3millionchildreninEnglandareeligibleforandclaimingFSM.10

•OfchildrenregisteredforFSM1180%(pupilsinprimaryschools)and69%(pupilsinsecondaryschools)tookthemup–anaverageacrossthetwoofalmost75%12oraround1millionchildren.

2.5

Children living in poverty

Nu

mb

er

of

ch

ild

ren

(m

illio

ns)

0

0.5

1

1.5

2

2.2m

Figure 1: Entitlement to FSM and children in poverty

Children entitled to FSM

1.5m

1.3m

1m Meet entitlement criteria for FSM

Registered for FSM

Receiving FSM

Fair and square 5

Why do so many children in poverty not get free school meals?TherearethreekeyreasonswhysomanychildreninpovertydonotreceiveFSM.

1. Not all children living in poverty are entitled to receive them.ChildrenlivinginlowincomeworkinghouseholdsarenotnormallyentitledtoreceiveFSM.Asalreadyhighlighted,around700,000schoolchildrenlivinginpovertyarenotentitledtoreceiveFSM.

ThisisbecausetheeligibilitycriteriaforFSMmeanthatparentsworking16ormorehoursperweek–24hoursforcouplesfromApril2012–andsoareentitledtoreceiveworkingtaxcredit,losetheirentitlementtoFSM.

Lateststatisticsshowthatmorethanhalfofchildreninpoverty(58%)liveinlowincomeworkingfamilies.13ManyofthesechildrenwillnotbeentitledtoreceiveFSMbecauseoftheirparents’workstatus.Respondentstooursurveysaid:

‘When I started working (going from income support) as a single parent I found it too expensive to be able to pay for school meals for my children.’

‘the FSM system should be looked into, the weekly cost of school meals is about £10 or more – times this by the number of children it would mean that I would need to pay £30 or more a week for a cooked lunch.

2. Not all families who are entitled make a claim.EveniftheyareentitledtoFSM,somefamilieschoosenottomakeaclaim.Thismaybebecausetheirchildrendonotwantthemealsoritmaybebecausetheparentsdonotfeelthemealsareofgoodenoughqualityfortheirchildren.TherearealsoongoingissuesaroundthestigmaattachedtothereceiptofFSM.SomeoftheseissuesarediscussedinmoredetailinChapter5.ItisimportanttonotethatschoolsareincreasinglyaskingparentstosignupforFSMeveniftheirchildrendecidenottotakethem,becausetheymayreceiveadditionalsupportbasedonthenumberofchildrenregisteredforFSM.Oftheestimated1.5millionchildreneligibleforFSM,around200,000arenotregistered.

3. When the family have made a claim, not all children choose to eat the meal.EveniftheparentschoosetoregisterforFSM,childrendonotalwayseatthem.Ofthearound1.3millionchildrenregisteredforFSM,aroundaquarter(325,000)donottakethemuponanyparticularday.

80%

Always0%

10%

Figure 2: When you are entitled to free school meals, do children take them?

72%

20%

30%

40%

50%

60%

70%

Most of the time

Occasionally Never (but registered)

53%

17%

29%

7% 8%3%

10%

Primary

Secondary

Free school meals survey, questions 13 (primary) and 21 (secondary): 97 and 62 responses respectively

6 Fair and square

... around 700,000 school children living in poverty are not entitled to receive FSM.

AsshowninFigure2,oursurveyfoundasimilarlymixedpictureoftakeup–whilstthemajorityofparentswhoregisteredsaidtheirchildren(inbothprimaryandsecondaryschool)ateFSM‘always’or‘mostofthetime,’onlyaroundthreequartersofprimary,andhalfofsecondaryschoolstudentswere‘always’takingone.Onein10primaryandoneinfivesecondaryschoolchildrenregisteredforFSM‘never’,oronly‘occasionally’,hadthem.

SomechildrendonotalwayswanttheirFSMastheymaynotlikethemorhavethetimetoeatthembecauseoflunchtimeactivities.Parentsrespondingtooursurveynoted:

‘My son preferred to eat at break to participate in lunchtime clubs. FSM is not available at break time.’

‘Sometimes they don’t have time if they have sports clubs etc’

Nancy and Mark’s familyNancyisunemployedandhasapartnerwhoisonEmploymentSupportAllowance.Theyhavethreeschoolagechildren,twoareinprimaryschoolandarereceivingFSM,andoneisinsecondaryschoolbutbecauseherecentlychangedschools,heisstillwaitingforhisFSMapplicationtobeprocessed.

ForNancy’schildren,theirschoollunchisthemainmealoftheday.Intheeveningtheyoftenjusthaveasmallerdinner,especiallyiftheyarealltired.FSMarethereforeveryimportantastheyguaranteeherchildrenagoodmeal.

BeforetheFSMapplicationswerecompletedforallherchildren,Nancyandherpartnerhadtoprovidepackedlunchesforafewweeks.Shefoundthattheycostthefamilyaround£30aweek(£10perchild).Nancyfoundthatthesuppliesandsnacksforpackedluncheswere‘ridiculously priced’.

Anotheradditionalcostwasthatshefoundherchildrenenjoyedsnackingontheitemsintendedfortheirpackedlunchduringtheeveningsoitwashardertobudget.OnceshehadFSMsortedforherchildrenshehadmorefortheweeklyfoodshop: ‘that was an extra £30 of food in the freezer’.

Sheisveryhappywiththeschoolmealsherchildrenareprovidedforintheirprimaryschoolastheyhavethechoiceofagoodrangeofhotfood.

Athispreviousschool,hereldestsonreceivedFSM.Shefoundthatheneededsomeextramoneytosupplement

thevalueoftheFSMasitonlycoverstheequivalentofasliceofpizzaandadrink.ThevalueoftheFSMwas£1.95butNancythoughtthatatleast£3adaywasnecessary.Themealatthesecondaryschoolwasalsounsatisfactoryasitwasmostlyjunkfood,leavingNancyconcernedaboutherson ‘not having a proper meal’.

ChildrenattheschoolwhoreceiveFSMgetatokentohandinsotheyareclearlyidentifiableleadingNancytoalsohaveconcernsthatthisalienateshersonfromhispeers.TheschoolwaseventhinkingofintroducingstaggeredluncheswithFSMchildrengoingintothecanteenbeforeothersleadingtofurthersegregationofthoseinreceiptofFSM.

NancyisconcernedaboutthelossofFSMifsheweretomoveintoworkbecauseaswellasrent,counciltax,travelandchildcarecosts–payingforschoollunchesorprovidingpackedlunchesis‘so expensive’withthreechildren.

NancybelievesallchildrenshouldgetFSMasitwouldguaranteeallchildrengetagoodmealanditwouldremovetheprejudicetowardsthoseonFSM:

‘If every child had a free school meal then there would be no stigma because everyone would be the same. You feel embarrassed to say you are on free school meals – the children see the differences.’

Fair and square 7

4. What impact do the current free school meal eligibility criteria have on family finances and on decisions about moving into work?

FSMhaveasubstantialfinancialvalue.Themostrecentavailabledataindicatethatschoolmealscostanaverageof£1.88inlocalauthority(LA)cateredprimaryschools,and£1.98inLAcateredsecondaryschools.14Assuminganaverageacrossthetwoof£1.93foreachchild,FSMareworthapproximately:

£1.93 x 5 (days per week) = £9.65 per school term week

£9.65 x 38 (weeks per year) = £367 averaged over the course of the year.

Asalreadyhighlighted,parentswhobegintowork16hoursormoreperweek(24hoursforcouplesfromApril2012),losetheirentitlementtoreceiveFSM.Thiscanhugelyundermineworkincentives.

InadditiontothedirectvalueoftheFSMentitlement,receiptofFSMmayalsoprovideaccesstootherbenefits.Forexample,theDirectGovwebsitenotes:

‘Some schools and local authorities offer extra support to children who are registered – for instance, help with the cost of school trips or music lessons.’15

Oneoftheparentswesurveyednoted:

‘... receiving free meals also allows my children access to music lessons at a reduced rate as well as half price entry at our local leisure centre, this allows them to participate in activities that I would be unable to afford.

There are many working families who live below the poverty line and do not qualify for free meals and this is one area that needs to be looked at.’

Entitlementssuchasschoolclothingallowances,16orreducedpriceaccesstoleisurefacilities17contributetotheoverallvalueofentitlementtoFSM.

ParentstoldusabouttheimpactofthelossofFSMontheirfamilyfinances:

‘the difference between me working or not is about £40, half of which is now paid out in school meals. It has a huge impact’

For example, a lone parent with three school aged children would currently be entitled to £272 per week benefit income (after housing costs) when out of work.

Working 16 hours per week on the minimum wage (£6.08 per hour) their income would be around £363 per week (a gain of £91). £29 in school meal costs reduces the gain to £62, representing around a third of the overall financial benefits of working.

40%

A lot0%

5%

Figure 3: How worried are you about the financial implications of losing your FSM if you or your partner move into work or take on additional hours?

45.3%

10%

15%

20%

25%

30%

35%

A little Not at all Not applicable (entitled but not receiving FSM)Free school meals survey, question 9, 95 responses

45%

50%

33.7%

8.4%12.6%

8 Fair and square

WeaskedparentswhoarecurrentlyentitledtoreceiveFSMhowworriedtheyareaboutthefinancialimplicationsofthelossofFSMiftheymovedintoworkortookonadditionalhours.Aroundhalfofrespondentssaidtheyworried‘alot’aboutthis.Lessthanonein10werenotworriedatallaboutthis.

Manyparentswereworriedthat,inlargepartasaresultofthelossofFSM,theycouldactuallybeworseoffasaresultofmovingintowork.

‘If I move into work I could actually be getting less money than I do now – I get disability benefits and would then have to start paying for the school meals but with a lower income’

‘When I move into paid work (I am currently a carer/single parent) my income will be lower – school lunches are yet another thing to worry about.’

Thereappearstobeaclearworkdisincentiveeffect.MorethanaquarterofrespondentssaidthattheimpactontheirFSMentitlementaffectedtheirdecisionsaboutmovingintoworkortakingonadditionalhours‘alot’.Sixoutof10saiditaffectedthesedecisionstosomedegree.

AsdiscussedinmoredetailinChapter6,changesasaresultoftheintroductionoftheUniversalCreditcouldleadtotheFSMeligibilitycriteriahavinganevenmoresubstantialimpactonworkincentives.

Amy’s familyAmyisasinglemotherwithfourchildren,oneatprimaryschoolandtwoatsecondaryschool.Sheisunemployedandreceivesincomesupport.

HerthreechildrenatschoolreceiveFSM.Shewouldfinditveryexpensivetopayforherchildren’sschoolmealseverydayandislessworriednowthattheyhaveFSM.Theschooldayislongandshethinksitisreallyimportantforherchildrentohavesomethingdecenttoeattokeepthemgoing.

However,theFSMonlycoversenoughforfoodandherchildrensometimesaskforextramoneytobuyadrink.Sheisalsoconcernedthatthefoodoptionsattheschoolarenotveryhealthyandtheschoolshouldeitherprovidebettermonitoringofthechildren’sfoodchoicesorprovidemorenutritiousoptions.

ThesecondaryschoolherchildrenattendhasacashlesssystemwitheachchildissuedwithamealcardandforthoseonFSMthisistoppeduptothevalueoftheFSM.Shefeelsthatthemealcardislessstigmatisingbecauseallherdaughter’sfriendshavethem.Thecardsystemmeans’all the kids are the same’andshebelievesallschoolsshoulduseacashlesscardsystem.

Amydoeswanttoworkpart-timeeventuallywhenherbabyisolder.However,sheisworriedabouttheimplicationsoflosingFSMifshemovedintoworkespeciallywithhavingtoprovideforfourchildrenandcoverchildcareandtravelcosts.

AmybelievesalllowincomefamiliesshouldreceiveFSMeventhosewhoareworkingfull-timebecausemanyofthemarestillonlyjust‘making ends meet.’

40%

A lot0%

5%

Figure 4: To what extent does the impact on your FSM entitlement affect your decisions about moving into work or taking on additional hours?

27.4%

10%

15%

20%

25%

30%

35%

A little Not at all Not applicable (entitled but not receiving FSM)Free School Meals survey: question 11, 95 responses

45%

50%

32.6%29.5%

10.5%

Fair and square 9

5. Families’ views on free school meals

Is there still stigma attached to FSM?TherehavebeenlongstandingconcernsaboutthestigmaassociatedwiththereceiptofFSM.ResearchhasidentifiedthatmanychildrendonotclaimtheirentitlementtoFSMduetoteasing,bullyingandfearofstigma.18Manyparentswesurveyedremainedconcernedaboutthis:

‘My older children have had free meals in the past and have been bullied as a result’

Onerespondentnotedthat:

‘The staff think you’re worthless’.

Anothersimplyhighlighted

‘Unkind and unpleasant remarks’.

Therewasagreatdealofvariationinthelevelofconcernfeltbyparents.Inparttherewasvariationbyage,withprimaryschoolchildrenlesslikelytobeawareofwhowasandwasnotinreceiptofFSM.However,itwasclearthatstigmawaseliminatedifchildrenwereinschoolswhereFSMrecipientscannotbeidentified.Forexample,inschoolswheremealsareprepaidfororwherecashlesssystemsoperate–suchasacardbasedorbiometricsystem.Onemotherweinterviewedstatedthatthecardsystemtheyuseatherchild’sschoolmeans ‘all the kids are the same’.Parentsfromthesurveyalsonoted:

‘As we have a cashless system others kids need never know my kids have FSM. They are a godsend and I would really struggle without them.’

‘The only way anyone would know is if my kids choose to say. With the cashless system it’s completely confidential.’

‘Because of the system (fingerprint at till), money is added automatically to account... and nobody knows who is who.’

However,intheschoolswherechildrenwhoreceiveFSMwereeasilyidentifiabletherewasadifferentstory:

‘My child enjoys most of his school meals. He’s becoming aware that not everyone gets them free though, and this is a cause for embarrassment - if the school could come up with a system where everyone had a lunch ticket, paid for in advance, that would save a lot of heartache’

Forthesereasons,oneofourrecommendationsisthatcashlesssystemsareextendedtoallschools,inorderthatchildreninreceiptofFSMarenotdifferentiatedfromtheirpeers.

10 Fair and square

What do parents think of the quality and nutritional value of FSM?Highqualityfoodprovidedinschoolscanhaveasignificantimpactonachild’shealthanddevelopment.Thisisimportantasgrowingupwithapoordietcanleadtohealthproblemsinchildhoodandinlaterlife.Itcanalsohaveanegativeimpactonchildren’smentalwell-being.19Healthyandbalanceddietsarealsocrucialtolimitingoravoidingseriousconditionssuchaschildandadultobesity,20diabetes,highbloodpressure,cancerandheartdisease.Researchhasalsoshownthatschoolmealsareoftenhealthierthanpackedlunches,withonlyonepercentofpackedlunchesmeetingthenutritionalstandardssetforschoollunches.21ThenutritionalvalueandqualityofFSMarecentraltoencouragingtakeupandimprovingthehealthofournation’schildren.

WhenaskedwhytheirchildrentakeupFSMwhenentitled,around30%ofparentswithprimaryschoolchildren,and35%ofsecondaryschoolparents,saidonereasonwasthattheyarehealthy.Aparentrespondingtothesurveystated:

‘The menu at my child’s school is interesting, varied and nutritious.’

Providingchildrenwithanutritiousmealatschoolcanalsoinfluencefoodchoicesinthehomeaschildrenlearnabouthealthyfoodoptions.Researchhasindicatedthatthefoodeatenatschoolhasacentralroleinshapingchildren’sdiets.22

Aparentweinterviewedtoldusthathersonisafussyeaterbutisencouragedtotryavarietyoffoodwhenheseeshisfriendseatingtheirschoolmeals.

However,inthesurveysomeparentsexpressedtheirconcernaboutthequalityoftheschoolmealtheirchildrenwerereceiving.Parentssaid:

‘I don’t think the school is providing enough healthy options’

‘The school meals are high in fat and less likely to be healthy for my children.’

SomeparentssurveyedalsosuggestedthatinsomecasestheamountprovidedforFSMisnotsufficienttobuyfullmealsfortheirchildren,orthatthereisverylimitedchoiceforthoseinreceiptofFSM:

‘A main meal and pudding cost more than my daughter is given on her lunch card!’

‘In secondary schools there is often a large choice of meals available – but only one choice for FSM (the ‘meal-deal’). Not very fair for the child.’

OthersraisedtheissuethatsupportwithFSMdoesnotalwaysincludemoneyforadrink.

Fair and square 11

TherehavebeensignificantimprovementsinthequalityofschoolfoodinthepastfewyearswiththeintroductionofstatutorynutritionalstandardsforschoolfoodandthesettingupoftheSchoolFoodTrust.23Theseincluderestrictionsonconfectionary,pre-packagedsavourysnacksandhigh-sugarfizzydrinks,andincreasesinfruit,vegetablesandhighqualitymeatandfish.ResearchfromtheSchoolFoodTrustindicatesthebenefitstheseimprovedstandardshavehadonpupilconcentrationandengagementwithlessons.24However,currentlythesestatutorystandardsareonlyformaintainedschoolssodonotapplytoacademiesandfreeschools.Itisaconcernthatwiththerecentincreaseinacademies,manymorechildrenwillbeattendingschoolsthatdonothavelegalbindingnutritionalstandards.Academiesandfreeschoolsmustbecoveredbythenutritionalstandardsinordertoensureallchildrenarereceivingnutritious,highqualityfoodinschool(seerecommendationc).

FSMareparticularlyimportantfordisadvantagedfamilies.Researchstudieshavefoundthatpoordietscanbeprevalentandchildobesityisparticularlyhighinlowincomefamilies.25Healthyfoodoptionscanbelessaccessibleandmorecostlymakingitmoredifficultforfinanciallyconstrainedparentstoprovidenutritiousmealsfortheirchildren.

Poorchildrenonaverageeathalfthedailyrecommendedfruitandvegetableintake,exceedrecommendeddailysugarsandsaturatedfatintakesandofteneatinadequatelevelsofiron,

folateandvitaminD.26FSMenablechildrentohaveanadequatemealwhentheremaybereductionsonfoodspendingathome27asoneparentinoursurveywrote:

‘It ensures the children get healthy balanced meals when the budget at home is so tight.’

Nutritiousschoolmealsfordisadvantagedchildrenthereforehavethepotentialtodecreasethesedietaryinequalities.Forsomeschoolchildrentheirfreeschoollunchmayoftenbetheonlyhealthycookedfoodtheyget,andforsomeitcanbetheironlymealoftheday.Asoneparentinthesurveystated:

‘It’s peace of mind that he’s had a decent meal at school.’

TheresponsefromaparentbelowgraphicallyillustratestheimpactthelossofFSMcanhaveonachild’sdiet:

‘Child liked the meals when he was entitled to them. Now he just has a bread roll if I don’t have the full money’

Thesurveyaskedparentswhichmealwastheirchild’smainmealofthedayand(asshowninFigure5)althoughthemajoritysaiddinner,nearlyathirdsaidthattheirchild’slunchatschoolistheirmainmeal.

Thishighlightstheimportanceofensuringallschoolmealsareofhighquality.AnevaluationofJamieOliver’s‘FeedMeBetter’campaign,acampaignwhichin2004/05focusedonimprovingthequalityofschoolmealsservedintheLondonBoroughofGreenwich,foundthatthecampaignhadapositiveeffectonKeyStage2resultsinEnglishandScience.28ThestudyfoundthatthepercentageofpupilsacrossGreenwichreachinglevel4inEnglishincreasedby4.5percentagepoints,andthepercentageofpupilsreachinglevel5inScienceincreasedby6percentagepoints.ThenatureofthecampaignmeantthattheevaluationcoulduseotherlocalauthoritieswithsimilarcharacteristicstoGreenwichasanaturalcontrolgroup,meaningtheresultsidentifyadirectcausaleffectofimprovedschoolmealsoneducationalattainment.

Figure 5: Which meal is your child’s main meal of the day?

Breakfast

Lunch

Dinner

Free school meals survey: question 29, 110 responses

65.5%

29.1%

5.5%

12 Fair and square

Jennifer’s familyJenniferisasinglemotherwithfourchildren,threeoftheminprimaryschool.OneofherchildrenhasAutisticSpectrumDisorder,onehasmentalhealthissuesandthebabyhasrestrictedgrowthsyndrome.ShereceivesFSMforallherprimaryschoolagedchildrenatthevalueof£1.85perday.

Thechildren’smainmealofthedayistheirFSMandtheydogetahealthycookedmealatschoolalthoughshedoesthinktherecouldbemorevariety.Herchildrenliketheschoollunchasitisahotmealandiswellcooked.Theyalsolikesittingandeatingamealwiththeirfriendsandaremorelikelytotrynewfoodsatschoolastheirfriendsarehavingthemtoo.

ThehealthvisitortoldJenniferaboutherentitlementtoFSMforherchildren.Twooftheapplicationswereprocessedfinebutoneformgotlost.Soforeightweeksshehadtopayforonechild’sschoolmealandthis‘did make things hard financially’.

SheisconcernedaboutthestigmaofFSMandhassaidthatforthe ‘older ones it has to be kept discreet... otherwise they will be bullied’.Sheexpressedaparticularconcernthatifhersonwithmentalhealthproblemswasbullied,hecouldturnviolentandbeexpelled.

Duringschoolholidays,Jenniferfindsitveryexpensivetopayforthreeextralunchesperdayandherweeklyshoppingbillgoesupbetween£30–£40.Shefindsthatshecannottakeherchildrenoutondaytripsortoactivitiesasmuchasshewouldnormally.

Jenniferisconcernedthatifshemovedintowork,schoolmealcostswouldbepartofarangeofextracostsshewouldface.Shebelievesallfamiliesonalowincome,includingthosewhoareworking,shouldgetFSMfortheirchildren.

Breakfast

Lunch

Dinner

Fair and square 13

6. What does the future of free school meals look like?

AsaresultoftheintroductionoftheUniversalCredit,theeligibilitycriteriaforFSMhavetochangesubstantiallybySeptember2013.ThisisbecausekeybenefitswhichdeterminewhetherafamilyisentitledtoFSM(includingIncomeSupport,JobSeekers’AllowanceandChildTaxCreditandWorkingTaxCredit)willallceasetoexistfornewclaimants,29andbereplacedbytheUniversalCredit.

Underthecurrentsystem,thelossofFSMat16hoursofworkperweek,(24couplesfromApril)ispartiallyalleviatedbygainingsubstantialadditionalbenefitincome(throughWorkingTaxCredit)atthesamehoursthreshold.Thismeansthatalthoughthebenefitofworking16hoursperweekarereducedbythelossofFSM,thefamilywillnormallystillgainincomeoverallatthepointwheretheylosetheirFSMentitlement.

Therewillbenothreshold(eitherofhoursorearnings)withinthenewUniversalCreditsystematwhichthefamilygainasubstantialincreaseinbenefitincome.Instead,householdincomeincreasesgraduallyasearningsincrease.ThismeansthatthereisnopointatwhichthelossofFSMiscoveredbyotherbenefits.Thiscreatesa‘cliffedge’whereifaclaimantexceedsthispoint,thecostsexceedthebenefits.Thiseffectivelymeansthatyoulosemoneyforearningmoreorworkinglonger.

Thegovernmenthasindicatedthattheyareconsideringhowtoreplacethecurrententitlementcriteria,perhapsthroughanincomethresholdatwhichFSMentitlementislost.30However,thefinaldecisionforhowFSMaredealtwithremainsunderconsideration.

Figure6illustratesthepotentialimpactontheincomeofaloneparentwiththreeschoolagedchildrenwithanearningslimitof£7500peryear(£144aweek)tobeimposedonFSMentitlement.

Itisclearthatthissituationwouldcreateasevereworkandworkprogression,disincentive.Afamilyearning£143perweekwouldbesubstantiallybetteroffthanafamilywho(asaresultoftakingonadditionalhoursorreceivingapayrise)earnedjustoverthe£144threshold.

BecauseofhowUniversalCreditentitlementisstructured–withhighwithdrawalratesofbenefitswhenearningmoreorworkinglongerhours–manyofthefamiliesaffectedwillhavetoearnfarmorebeforetheyrecoverthelossofFSM.

Figure 6: Household income under Universal Credit31 for lone parent with three children with earnings limit of £144 per week for FSM entitlement.

£510

Weekly household earnings

£350

£370

£144

£390

£410

£430

£450

£470

£490

(Where rent is £85 pw, council tax is £15 pw and the family are in receipt of FSM which is included as equivalent cash value32)

£530

£550

We

ekly

ho

use

ho

ld in

co

me

(i

nclu

din

g F

SM

eq

uiv

ale

nt

valu

e)

£0 £50 £100 £200 £250 £300 £350£150

£231

£499hh income = £499

14 Fair and square

Fair and square 15

... a benefit cliff edge that leaves low income families worse off for earning more.

Inthecasegiven,theparentwouldneedtoearnanadditional£88perweek(morethan£4500peryear)beforetheirincomefullyrecoveredfromthelossofFSM.Thismeansthattheperson’searningswouldneedtoincreasefrom£7500tomorethan£12000ayearbeforetheiroverallincome,includingthevalueofFSM,reachedthelevelitwasatwhentheirearningswerebelow£7500.

ThelossofFSMisalsolikelytobeexacerbatedasthefamilywouldalsolosetheadditionalentitlementsthatareprovidedlocallyasaresultofthereceiptofFSM,includinguniformallowancesandreducedpriceaccesstoleisurefacilities.Oncethesearetakenintoaccounttheeffective‘cliffedge’maybeevengreater.

ThegovernmentneedtoconsideralternativeoptionsforprovisionofFSMwhichdonotcreateabenefitcliffedgethatleaveslowincomefamiliesworseoffforearningmore.WebelievethatthebestwaytoaddressthisistoextendFSMtochildreninallfamilieseligibletoreceivetheUniversalCredit.Thisoptionisdiscussedinmoredetailinthefollowingchapter.

7. Extending free school meals to all Universal Credit recipients

What are the benefits of extending entitlement?1) Children in poverty in working families would receive FSM.ManyfamilieswithchildrenmaycontinuetoretainsomelevelofUniversalCreditentitlementevenwithrelativelyhighearnings.ExtendingFSMtothesehouseholdswouldmeanthatalmostallchildreninpovertyinworkinghouseholds,andout-of-workhouseholds,wouldreceiveFSM.

2) Extending entitlement to children in low income working families could help to reduce stigma for all recipients,sinceFSMwouldbeavailabletoasignificantlyincreasedproportionofchildren,andwouldnotbeassociatedwithworklessness.

3) Work incentives would be substantially better for parents with school aged children compared to alternative options for the provision of FSM under the Universal Credit.Foradetailedexplanationofthereasonsforimprovedworkincentives,seeAppendix1.

What would this cost?OurestimatessuggestthatthecostofprovidingFSMtoallchildreninfamiliesinreceiptofUniversalCreditinEnglandwouldbearound£500millionperyear.

However,ifnecessary,thecosttogovernmentcouldbesignificantlyreducedthroughpartialpaymentfromparentsbyreducingtheirUniversalCredit‘incomedisregard’.Thiscouldreducethecosttogovernmenttoaround£290millionwereareductioninhouseholdincomedisregardsofaround£5perweekappliedforeachchildreceivingFSMinthehousehold.Forafullexplanationofhowthesereducedincomedisregardscouldbeapplied,seeAppendix1.

ForafullexplanationofthecostsofextendingFSMtoallchildreninfamiliesinreceiptofUniversalCreditseeAppendix1,andAppendix2forfullpolicycostingtables.

TheintroductionoftheUniversalCreditcreatesauniqueopportunitytoensurethatallchildreninpovertygetFSM,includingthoseinlowerincomeworkingfamilies,byextendingFSMentitlementstoallUniversalCreditclaimants.Weestimatethatthiswouldmeananadditional1.3millionchildrenwouldreceiveFSM.Forafullexplanationofhowthisproposalwouldwork,seeAppendix1.

8. Conclusion and policy recommendations

FSMareakeybenefitforlowincomefamilies,ensuringthatchildreninthesefamiliesgetahealthylunchatschoolandeasingthestrainontightfamilybudgets.

However,around700,000childreninpovertyarenotentitledtoreceiveFSM,withmanyofthesecomingfromlowincome,workingfamilies.ThelossofFSMwhenparentsmoveintopaidemploymentofmorethan16(single)or24(couple)hoursperweek,regardlessofincome,isnotonlyunfair,butitalsocreatesasevereworkdisincentive.Sixoutof10parentsinoursurveysaidthatthelossofFSMhasanimpactontheirdecisionsaboutwhethertomoveintoworkortakeonmorehours.

ThereisariskthatthissituationcouldbecomeevenworsefollowingtheintroductionoftheUniversalCredit.ThepossibilityofintroducinganearningsthresholdforFSMcouldleadto

asituationwherelowincomefamiliesloseoutforincreasingtheirworkinghoursortheirpay.

IssuesofstigmaaroundthereceiptofFSMstillexist,asdoissuesaroundthequalityofthesemeals.AswellasextendingFSMeligibilitytoworkingfamilies,actionalsoneedstobetakentoaddresstheseissues.

Policy recommendations1) The government should extend FSM entitlement to school children in families in receipt of Universal Credit.

TherearetwokeyreasonswhythegovernmentshouldextendFSMtoschoolchildreninfamiliesinreceiptoftheUniversalCredit.Firstly,itwouldmeanthatalmostallchildrenlivinginpovertywouldbeentitledtoFSM,includingthoseinlowincomeworkingfamilies.Secondly,itwouldhelptopromoteworkincentivesandensurethatwork‘pays’

forparentswithchildreninreceiptofFSM.

2) All local authorities and schools providers should introduce cashless systems in order to de-stigmatise the receipt of FSM.

Currentlyaroundhalfofsecondaryschoolsusecashlesssystemsforthepaymentforschoolfood.33SuchsystemsensurethatchildreninreceiptofFSMarenotidentifiedassuch.However,manysecondaryschoolsstillusecashpaymentforschoolfood,withavoucherortokenforthoseinreceiptofFSM.Insuchcases,childreninreceiptofFSMcanbeidentified,andasaresult,thesechildrenmaybestigmatised.

WerecommendthatcashlesspaymentsystemsareimplementedinallschoolssothatchildreninreceiptofFSMareneveridentifiedassuch.

16 Fair and square

What public support would there be for doing this?Thereiswidespreadsupportforallowingchildreninlowincome,workingfamiliestohaveFSM.

AnationallyrepresentativepollconductedbyGFKNOPonbehalfofTheChildren’sSociety(Figure7)foundthatmorethan90%ofpeoplebelievethatFSMshouldbeavailableforallchildreninpoverty,includingthoseinworkingfamilies.

80%

Yes0%

10%

Figure 7: Should FSM be provided for school children living in poverty, including those in working families?

91%

20%

30%

40%

50%

60%

70%

No Not sure

Base: UK, all adults 16+, 1000 respondents, 6 Feb 2012

90%

100%

8%1%

Fair and square 17

Oneoftheprinciplebarrierstothisiscost.34Theaveragecostofinstallingasystemisaround£16,00035andthetotalcostofinstallingasysteminEnglishsecondaryschoolsthatdonothaveonewouldbeintheregionof£20million.36TheDepartmentforEducationshouldconsiderwhatfinancialsupporttheycouldprovidetoschoolswithoutcashlesspaymentsystemsinplace,toenablethemtointroducesuchsystems.

3) The government should review the extent to which state maintained schools and academies are adhering to the nutritional standards for school food, and whether pupils in receipt of FSM are receiving enough support to purchase a full and nutritious meal, with a range of choices available within budget.

Allschoolfoodshouldsatisfythenewstatutoryrequirementsforbalancedmealsandhealthierschoolfood.However,currentlyacademiesandfreeschoolsareexemptfromtheserequirements.Thegovernmentshouldcontinuetopromotenutritiousandhighqualityschoolfoodbyreviewingtheextenttowhichthesestandardsarebeingadheredtoacrossthecountry,andensuringallstatefundedschools,includingacademiesandfreeschools,havetoadheretotheschoolfoodstandards.ThegovernmentshouldalsoconsiderwhetherOfstedshouldreturntoinspectingschoolfood.

ManyoftheparentswesurveyedraisedconcernsthatthesupporttheyreceivedforFSMwasinsufficienttopurchasethemealtheirsecondaryschoolchildren

needed.ThegovernmentshouldreviewthelevelofsupportbeingprovidedforFSMinsecondaryschoolsandwhetheritissufficienttoprovideafullandnutritiousmeal,andtoprovidechildrenreceivingFSMwithachoiceofoptions.

Thereshouldalsobemoreemphasisonaskingchildrenandyoungpeopletheiropiniononlunchtimes,schoolmealsandwhattheywouldliketoeat.ThiswouldbeaninformativeandvaluableexerciseandcouldimprovepupiluptakeofFSMandinterestinhealthyeating.OnewayofdoingthiswasdemonstratedinNewhamwhereschoolnutritionalactiongroupsgavepupilstheopportunitytosharetheirviewsonschoolmealswithschoolgovernors,staffandcateringrepresentatives.37

Appendix 1: Extending free school meals to all children in families in receipt of Universal Credit

OurestimatessuggestthatthecostofextendingFSMforallchildreninfamiliesinreceiptofUniversalCreditintheUKwouldbearound£500millionperyear.However,ifnecessary,thecosttogovernmentcouldbesignificantlyreducedthroughpartialpaymentbyworkingparentsthroughreductionsintheirUniversalCredit‘incomedisregard’.

How would a part-funded option work?IncomedisregardsintheUniversalCreditaretheamountthefamilycanearnbeforetheirUniversalCreditentitlementbeginstobereduced.Afterthispoint,foreachadditional£1whichisearned(net),65piswithdrawnfromUniversalCreditentitlement.

SoaloneparentwithonechildwouldreceiveaminimumincomedisregardunderUniversalCreditofaround£53perweek.InordertopayfortheextensionofFSMtoworkingfamilies,partpaymentforthisadditionalentitlementcouldcomefromreducingtheincomedisregardswithintheirUniversalCreditentitlement.

Areductioninthefamily’sincomedisregardwouldmeanthatastheymoveintowork,theamountofUniversalCredittheyreceivewillbegintobereducedonthebasisofearningsataslightlylowerearningspoint.However,underourpolicyproposalsthesefamilieswillcontinuetoreceiveFSMastheymoveintowork.

ThecostcalculationsinAppendix2indicatethatareductionintheleveloftheincomedisregardof£5foreachchildinthehouseholdcouldpayfornearlyhalfofthecostofextendingFSMtoworkingfamilies–thiswouldreducethecosttogovernmenttoaround£290million.Underthisoptioneverycontributingfamilywouldstillreceiveagreatervaluethroughschoolmealsreceivedfortheirchildrenthantheywouldloseincashthroughareducedincomedisregard.

Foraloneparentwithtwochildren,theirminimumearningsdisregard38underUniversalCreditwillbearound£58perweek.39Undertheseproposalsthiswouldbereducedto£48perweekwheretheyreceiveFSMforthetwochildren.

How could this work in practice?• A family makes a claim for Universal Credit at the point their first child is born.

They are found to be eligible and their claim begins.

• At the point the child starts primary school, they become entitled to FSM. They tell the school that they would like to take up their entitlement. Having made their application for FSM, they are told that they need to inform the DWP of this.

• The family notify the DWP that they have one child receiving FSM.

• The child starts receiving FSM.

• The DWP adjusts the household Universal Credit entitlement accordingly.

• When the child stops receiving FSM, the parents notify the DWP of this, and Universal Credit entitlement is adjusted again to reflect their entitlement to a higher income disregard.

18 Fair and square

How much would these policy options cost?BringingallchildreninfamiliesentitledtoreceiveUniversalCreditintoentitlementforFSMwouldmeanthat3.8millionchildren40couldbeentitledtoreceiveFSM.Basedoncurrenttakeupratesofschoolmeals,andprojectedtakeupratesofUniversalCredit,41itisestimatedthataround2.3millionchildrenwouldtakeupthisentitlement.

Thiswouldmeanthatanadditional1to1.5millionchildren(1.3millioncentralestimate–dependingoneffectofbehaviouralresponseonFSMtake-uprates),wouldreceiveFSM.Basedonthecurrentaveragepriceof£367perchild,eachyear,(andproductioncostof£43742),FSMentitlementcouldbeextendedtoallchildreninfamiliesinreceiptofUniversalCreditforbetween£404mand£625mperyear(dependinguponbehaviouralresponsesimpactingontake-uprates),withacentralestimateof£502mperyear.

Thiscostcanbefullycoveredbygovernment,orasexplainedinthisappendix,partfundedbyin-workfamilieswhosechildrenwouldgainentitlementtoFSM.TheamountitwouldcostgovernmenttogiveFSMtothesechildrenwouldvarydependingontheamountthattheincomedisregardwasreduced.Thecosttogovernmentcouldbereducedtobetween£231mand£367m(dependinguponresponseintake-uprates),centralestimateof£291m,wereareductioninhouseholdincomedisregardsofaround£5appliedforeachchildreceivingFSMinthehousehold.

ItisworthnotingthatthecosttogovernmentwouldbeslightlyhigherifthereductionintheincomedisregardwasappliedtothefirstthreechildrenonlytoreflectthathouseholdsgetnoadditionalincomedisregardwithinUniversalCreditaftertheirthirdchild.

Full policy cost tables are included in Appendix 2.

Why work incentives would improve for parents with school aged children.ExtendingFSMtoallUniversalCreditrecipientsofferssubstantiallyimprovedworkincentives.Thisisforthreemainreasons:

1) The earnings point at which FSM are lost reflects household circumstances and is high up the income distribution.TherewouldstillbeapointatwhichentitlementtoFSMislost,however,theearningspointatwhichthisthresholdisreachedwouldbeconsiderablyhigherthanthoseavailableundercurrentfinancialconstraints.Thisapproachwouldalsoreflectdifferenthouseholdcircumstances(andinparticularnumbersofchildreninthehousehold)sincethelargerthefamilythehighertheearningspointatwhichUniversalCreditentitlementislost.

2) In-work parents will experience an increase in their disposable incomes.Parentswhoarealreadyinwork,ormoveintowork,willexperienceanincreaseintheirdisposableincomes,regardlessofwhethertheextensionofFSMtoallfamiliesinreceiptofUniversalCredit

isfullyfundedbygovernmentorpartfundedbyin-workfamilies.Weestimatethat,incashterms,familieswouldbebetteroffbybetween£198and£367perchildreceivingFSMperyear43dependinguponwhetherfamiliespartfundorgovernmentfundsalloftheadditionalcostrespectively.

Evenbasedonconservativeestimates(whereallworkingparentswithchildrennowbenefitingfromreceiptofFSMwerepreviouslyprovidingalowcostpackedluncheverydayfortheirchildren)families,incashterms,wouldbebetteroffbybetween£78and£247perchildreceivingFSMperyear.44

3) The increases in income required to overcome the cliff edge are substantially reduced.ThisisbecausefamiliesnolongerentitledtoFSMbecausetheirearningsaretoohigh,keepahigherproportionofanyadditionalearningsthanthosewhoarestillinreceiptofUniversalCredit.BasicratetaxpayersinreceiptofUniversalCreditwillkeepaslittleas24pforeachadditionalpoundtheyearn;forthosewhoseearningsaretoohightoreceiveUniversalCredit,theywilltypicallykeep68pforeachpoundtheyearn.

Asaresultthesignificanceofthebenefit‘cliffedge’isgreatlyreduced,sincethehouseholdwillneedtoearnconsiderablylesstoovercometheeffectivecutinhouseholdincomecausedbythelossofFSM.

Fair and square 19

Appendix 2: Extending free school meals to all children in families in receipt of Universal Credit – policy costings

Annual estimates additional to Spending Review

In-work Additional Total No. In-work Required Proportion families government additional additional families Universal government contributions contribution annual cost children contribution Credit additional receiving per child income FSM per week (£) disregard reduction per child (£)

In-work families part-fund through £5 income disregard reduction

Decreased take-up 173.2 230.8 404.0 1,025,000 3.25 5.00 57%

Constant take-up 211.3 291.1 502.4 1,250,000 3.25 5.00 58%

Increased take-up 258.8 366.5 625.3 1,531,250 3.25 5.00 59%

Government funds full additional cost

Decreased take-up 0.0 404.0 404.0 1,025,000 0.00 0.00 100%

Constant take-up 0.0 502.4 502.4 1,250,000 0.00 0.00 100%

Increased take-up 0.0 625.3 625.3 1,531,250 0.00 0.00 100%

Proposed policy options: costs to government and in-work families (£ million)

Proposed policy options: range of costs to government (£ million)

Decreased take-up Constant take-up Increased take-up

In-work families part-fund additional cost 230.8 291.1 366.5

Government funds full additional cost 404.0 502.4 625.3

20 Fair and square

Key assumptions

Number of children currently receiving FSM

Number of eligible children under policy proposal

Average cost of school meals

•Weestimatethat1millionchildrenarecurrentlyreceivingFSM(SeeChapter3).

•Thereare7.5millionchildrenofschoolageinstatemaintainedschoolsinEngland45Wealsoknowthat50%ofallUKchildrenareestimatedtobeinhouseholdseligibletoreceiveUniversalCredit.46Thereforeweassumethat3.75millionEnglishschoolchildrenwillbeeligibleforUniversalCreditunderourpolicyproposal.

•Weassumea90%UniversalCredittakeuprate(seebelow)thereforeweassumethat3.38millionchildrenwillbeinfamilieseligibleforFSM.

•Latestannualsurveyoftake-upofschoolmeals47estimatedthattheaverageannualcostofschoolmealsacrossallschoolswasaround£367perchildin2010/11.

•Increasingtake-upcouldallowforproviderstotakeadvantageofeconomiesofscaleresultinginareducedaveragecostperschoolmealproduced.AnevaluationoftheFSMextensioninScotland48foundmixedeffectsoftheextensiononaveragecosts.Wethereforeassumethereisnegligibleimpactofeconomiesofscaleonaveragemealcosts,althoughthismaybeaconservativeestimateifproviderscanreducecostsinresponsetoasignificantincreaseindemand.

Variable Assumptions

Appendix 2: Extending free school meals to all children in families in receipt of Universal Credit – policy costings

Variable Assumptions

Fair and square 21

FSM take-up rates

Universal Credit take-up rates

Savings produced by a reduction in earnings disregards

Payment for out-of-work households

Additional cost of higher overall school meal take up

•Wehavecalculatedthatthecurrentrateoftake-upofFSMbythoseeligibleforthemistwo-thirds(seeChapter3).

•Thereisalackofrobustevidenceonthepotentialbehaviouralresponse,ofeitherthefamilieswhosechildrenarealreadyeligibleforFSMorthefamilieswhobecomeeligibleforFSM,toanincreaseinnumberofchildreneligibleforFSM.Wehavethereforeprovidedarangeofpotentialtake-upratesonceeligibilityisextended.Adecreasedtake-uprateisestimatedat60%andanincreasedtake-uprateisestimatedat75%.

•ThetakeuprateforChildTaxCreditsis80%49weusethisasanexampleoftake-upofanexistingbenefitbyfamilies.

•DepartmentforWorkandPensionsUniversalCreditassumptionsarethat100%ofexistingbenefitclaimantswilltake-upUniversalCreditandthat50%ofthosenotcurrentlyclaimingbenefitswilldosounderUniversalCredit.50

•Thereforeweassume90%offamiliesentitledtoUniversalCreditwilltakeitup–(100%x80%)+(50%x20%)=90%

•UniversalCreditworksonthebasisthatacertainamountofhouseholdearningsis‘disregarded’forthepurposesofmeanstestingforUniversalCreditentitlement.

•Thecalculationsaboveassumethata£5perweekreductioninthedisregardwillreduceUniversalCreditentitlementforworkinghouseholdsbyaround£3.25perweek–meaningthatworkinghouseholdseffectivelycontribute£3.25perweek,or£4.45perFSMweek(38schoolweeksintheschoolyear)perchild,towardseachweekofFSMtheyreceive.Thisisonthebasisofawithdrawalrateof65%forUniversalCredit;each£1ofearningsdisregardedisworth65ptohouseholdswhoarereceivingUniversalCreditandwhohaveearningsabovetheleveloftheearningsdisregard.

•TherewillbesomeworkinghouseholdsonthemarginsthatwillnotbeabletomakethefulllevelofcontributiontotheirFSMentitlement.Thisiseitherwhere(1)earningsarebelowthecurrentlevelofearningsdisregard,sotheywillnotseethefullimpactofareductioninthedisregardlevel,or(2)UniversalCreditentitlementissolowthatthefulllevelofcontributioncannotbedeductedbeforeentitlementreaches£0.Wehavenotincludedthesecircumstancesintothecostmodel,asthereislikelytobeasmallnumberofhouseholdsinthesecircumstances.

•CurrentFSMpolicyprovidesmealstoout-of-workhouseholds.WeassumethattheGovernmentcontinuestofund100%ofthecostofschoolmealsforthosefamilieswhoareout-of-work.

•Thepriceofschoolmealsaretypicallysubsidised,sothatthepricetoparentsatthepointofdelivery,islowerthanthecostofproduction.SchoolFoodTrustsurveydataputstheaveragecostofproductionofaschoolmealat£437peryear,51thisis£70peryearhigherthantheaveragepriceofthemeal(£367).

•FSMshavehighertakeupratesthanpaidforschoolmeals–asaresultcostingtheextensionofFSMshouldtakeintoaccountthelikelihoodofincreasedoveralltakeupofschoolmeals,andtheadditionalcost-over-priceoftheseadditionalmeals.

•ExtensionofentitlementtofreeschoolmealstoallchildreninfamiliesinreceiptofUniversalCredit,isestimatedtomeanthat1.9millionmorechildrenareentitledtoreceiveFSM(3.4mcomparedto1.5matpresent).

•Basedonanaveragetakeuprateof33%forchildrennotregisteredforFSM52wemayestimatethataround630,000ofthesechildrenarealreadyreceivingschoolmeals.

•ThetakeuprateforFSMissubstantiallyhigherthanschoolmeals(around67%ofchildreninfamiliesentitledtoreceivefreeschoolmealstakethemupeachday).Itisthereforeestimatedthatataconstanttakeuprate,ofthe1.9millionchildrenentitledaround1.3millionchildrenwilltakethemup.

•Therefore,anestimatedadditional620,000children(1.3millionadditionalFSMtakeup,minus630,000alreadytakinguppaidforluncheswhoweassumewillalltakeupthefreelunchoption)willreceiveschoolmeals.

•Thecost-over-priceofextendingFSMtothesechildrenisestimatedat£70peryearperchild,oratotalof£44 million per year.

(IftheFSMtake-upratedroppedto60%followingextension,theadditionalcost-over-priceofhigheroverallschoolmealtakeupwouldbeintheregionof£28million,iftake-upincreasedto75%,theadditionalcost-over-pricewouldbearound£63million.)

Endnotes

1. Seeforexample:Berlot,M.,James,J.(2009)Healthy School Meals and Educational OutcomesInstituteforEconomicandSocialResearchWorkingPaper;SchoolMealsReviewPanel(2005)Turning the tables: transforming school food

2. SchoolFoodTrust(2007)School lunch and behaviour: systematic observation of classroom behaviour following a school dining room intervention; SchoolFoodTrust(2009)School lunch and learning behaviour in primary schools: an intervention study; School Food Trust (2009) School lunch and learning behaviour in secondary schools: an intervention study

3. Childrenaresaidtobelivinginpovertyiftheyareinahouseholdlivingonlessthan60%ofmedianhouseholdincomeafterthedeductionofhousingcosts.

4. InEngland,childrenareentitledtoreceiveFSMiftheirfamiliesreceive:IncomeSupport,incomebasedJobSeeker’sAllowance,orincomerelatedEmploymentandSupportAllowance,theGuaranteecreditofPensionCredit,orChildTaxCredit(CTC)andhaveannualincomeof£16,190orless.However,thisdoesnotapplyifthefamilyisreceivingworkingtaxcredit(WTC)unlessthisisduringthefourweek‘WTCrunon’period.

5. www.islington.gov.uk/education/studentsupport/free_school_meals.asp

6. 29%ofchildrenliveinahouseholdonlessthan60%ofmedianhouseholdincome(afterhousingcosts)(DWP(2011)‘HouseholdsBelowAverageIncome:Ananalysisoftheincomedistribution1994/95–2009/10’London:DWP)Thisequatestoaround2.2millionchildreninstateschoolsinEngland.

7. AssumingallchildreninreceiptofFSMareinpoverty.ThenumberislikelytobesomewhathighersincesomechildreninhouseholdsentitledtoFSMwillnotbeinpoverty.

8. DepartmentforEducation(2011)‘Schools, pupils and their characteristics January 2011’London:DfE

9. HMRCstatisticsshowthatinDecember2011,2.669millionchildrenwereinfamilieseitherreceivingchildtaxcreditonly,(orthechildpremiumonincomesupport)andthissupportwasnottapered(i.e.hadincomeofunder£15,860).www.hmrc.gov.uk/stats/personal-tax-credits/cwtc-dec2011.pdfBasedon13millionchildrenintheUK,thisequatestoaround20.5%ofallchildren.

10. DepartmentforEducation(2011) ‘Schools, pupils and their characteristics January 2011’Table3a:www.education.gov.uk/rsgateway/DB/SFR/s001012/sfr12-2011.pdfnotethatregistrationsforFSMhaveincreasedsubstantiallyinrecentyears,theymayhaveincreasedsinceJanuary2011.

11. Englandonly.

12. Assumesequaldistributionofpupilsinprimaryandsecondaryschool–infactaround55%ofallchildrenareinprimaryand45%insecondaryschool.

13. DWP(2011) ‘Households Below Average Income: An analysis of the income distribution 1994/95 – 2009/10’London:DWP

14. MichaelNelson,JoNicholas,LesleyWood,EllenLever,LauraSimpsonandBeverleyBaker(2011)‘Sixth annual survey of take up of school lunches in England’SchoolFoodTrust/LACA

15. www.direct.gov.uk/en/Nl1/Newsroom/DG_200057

16. Forexample,eligibilitycriteriaforLeedsschoolclothingallowance:www.leeds.gov.uk/Advice_and_benefits/Benefits/Free_school_meals.aspx

17. ForexampleBracknellForest‘juniorleisuresaverscheme’www.bracknell-forest.gov.uk/leisure-saver-scheme-application-form-for-juniors.pdf

18. PamelaStoreyandRosemaryChamberlain(2001)Improving the Take Up of FSM,ThomasCoramResearchUnit,InstituteofEducation

19. Bradshaw(2002)The well-being of children in the UKSavetheChildren,London

20.4%ofchildrenaged2-10obeseandone-third(33.6percent)ofYearsixchildrenoverweightorobesewww.dh.gov.uk/en/Publichealth/Obesity/DH_078098

21. BBCNews(2010) Healthy Lunch Boxes a Rarity.Available:http://news.bbc.co.uk/1/hi/health/8451828.stm(Accessed19Mar,2012)

22.SchoolMealsReviewPanel(2005)Turning the tables: transforming school food.Sheffield:SchoolFoodTrust

23.www.schoolfoodtrust.org.uk/the-standards

24.SchoolFoodTrust(2009)School lunch and learning behaviour in primary schools: an intervention study. Sheffield:SchoolFoodTrust;SchoolFoodTrust(2009)School lunch and learning behaviour in secondary schools: an intervention study.Sheffield:SchoolFoodTrust

25.www.dh.gov.uk/en/Publichealth/Obesity/index.htm

26.Nelson,M.,Erens,B.,Bates,B.,Church,S.,Boshier,T.(2007)Low Income Diet and Nutrition SurveyLondon:FoodStandardsAgency

27. Atpg150,Flaherty,Veit-Wilson,Dornan(2004) Poverty: the facts,5thedition.ChildPovertyActionGroup,London

28.BelotandJames(2011)Healthy school meals and Educational Outcomes,JournalofHealthEconomics30(3),489-504

29.ExistingclaimantswillbetransferredontotheUniversalCreditbetween2013and2017.

30.DWP(2010) ‘Universal Credit: Welfare that works’London:DWP(p48)

31. BasedonoutofworkbenefitlevelsforFeb2012.

32.£1100annualvalueforthreechildrenisworth£21perweekwhendividedequallyacrossthecourseoftheyear.

22 Fair and square

33.Amongstschoolswhereitisknownwhetheracashlesssystemisinoperationornot,63%ofnon-LAcateredand59%ofLAcateredsecondaryschoolshadacashlesssysteminoperation:MichaelNelson,JoNicholas,KatyRiley,LesleyWood,andSandraRussell(2011)‘Sixth annual survey of take up of school lunches in England’SchoolFoodTrust.

34.SchoolFoodTrust(2009) ‘An independent review of cashless catering systems’

35.SchoolFoodTrust(2009)‘An independent review of cashless catering systems’p8.Averagecostofintroducingacashlesscateringsystembasedonfiguresonpage8givingaveragecostsacross39schoolsof£15,900perschool.

36.£15,900perschoolforthe3310statefundedsecondaryschoolsinEngland(numberofschoolsbasedonDfE(2011) ‘Schools, pupils and their characteristics January 2011’London:DfEtable2a)wouldbe£53million.Basedon60%ofsecondaryschoolsalreadyhavingcashlesssystemsinoperation(seefootnote36above)thecostofextendingsystemstotheremaining40%wouldbe£21million.www.schoolfoodtrust.org.uk/partners/resources/an-independent-review-of-cashless-catering-systems

37. CPAG:SchoolMealsFactSheet(2005)

38.Earningsdisregardsmaybehigherthanthisdependentonhousingcosts.

39.DWP(2011) ‘Universal Credit policy briefing note 14: Earnings disregards and tapers’ London:DWP

40.50%ofchildrenareestimatedtobeinhouseholdsentitledtoUniversalCredit.www.theyworkforyou.com/wrans/?id=2012-01-16b.89324.h&s=universal+credit+timms+section%3Awrans+section%3Awms#g89324.q0Thisisequivalenttoaround3.8millionchildreninstatemaintainedschools.

41. Basedona90%UCtakeuprate,therewouldbearound3.4millionchildreninfamiliesinreceiptofUniversalCredit.BasedontwothirdsofeligiblehouseholdstakingupFSM,therewouldbearound2.3milliontakinguptheirFSMentitlement.

42.Thecost-over-priceisusedtocalculatetheadditionalcostofextendingFSMresultingfromhigherlevelsofoveralltake-upofschoolmeals.SeetheassumptionstableinAppendix2forfurtherexplanation.

43.Workinghouseholdsassumedtocontribute£3.25perchildperweektotheirFSMentitlement,or£169peryear.

44.Conservativeestimatesassumefamiliespreviouslyprovidedlowest-costpackedlunchatvalueof£6.50perchildperFSMweek(low-costpackedlunchestimatepublishedbySchoolFoodTrustwww.schoolfoodtrust.org.uk/schools/projects/packed-lunches/packed-lunch-ideas),thereforereplacing£367assumedgainincentralestimateswitha£247assumedgain.

45.DepartmentforEducation(2011) ‘Schools, pupils and their characteristics January 2011’London:DfE

46.www.theyworkforyou.com/wrans/?id=2012-01-16b.89324.h&s=timms+universal+credit+section%3Awrans+section%3Awms#g89324.q0

47. SchoolFoodTrust(2011)Sixth annual survey of take-up of school meals in England

48.IpsosMori(2008)Scottish Government evaluation of the FSM Trial for P1 to P3 Pupils

49.www.hmrc.gov.uk/stats/personal-tax-credits/cwtc-take-up-09-10.pdf

50.www.theyworkforyou.com/wrans/?id=2011-11-21a.81076.h&s=children+%22universal+Credit%22+section%3Awrans+section%3Awms#g81076.q0

51. Averageproductioncostpermealof£2.23primaryand£2.36secondary,(anaverageof£2.30).Thisgivesacostof£11.50perweek,or£437fortheschoolyear.

52.Averageof34%primaryand32%secondary.(MichaelNelson,JoNicholas,LesleyWood,EllenLever,LauraSimpsonandBeverleyBaker(2011)‘SixthannualsurveyoftakeupofschoollunchesinEngland’SchoolFoodTrust/LACA,p20)

Fair and square 23

A better childhood. For every child.

TheChildren’sSociety,EdwardRudolfHouse,MargeryStreet,LondonWC1X0JLEmail:policy@childrenssociety.org.ukCharityRegistrationNo.221124|PhotographsmodelledforTheChildren’sSociety|©LaurenceDutton|©LarryBray|©NickDavid|©Shutterstock

The Children’s SocietyTheChildren’sSocietywantstocreateaworldwhereallchildrenandyoungpeoplearerespected,valuedandheard.Webelievethatchildhoodshouldbehappyandthatyoungpeopledeservetoreachtheirfullpotential.

That’swhyweworkhardtotransformthelivesofover48,000childrenandyoungpeopleinEnglandeachyear.

Ourpriorityischildrenwhohavenowhereelsetoturn.Weprotectyoungrunawaysfromthedangersoflifeonthestreet.Wegivedisabledchildrenavoiceandmorecontrolovertheirlives.Ourworkhelpsyoungrefugeesstartafreshinnewcommunities,andgivesyoungcarerstimeandenergytoenjoytheirchildhood.

Withover75programmesandchildren’scentresthroughoutEngland,weoffercare,respite,legalsupportandmentoringschemesthathelpturnlivesaround.

Throughourcampaignsandresearch,weseektoinfluencepolicyandperceptionsatalllevelssoyoungpeoplehaveabetterchanceinlife.

Tofindoutmoreaboutwhatwedovisit www.childrenssociety.org.uk

Forfurtherinformationaboutthisreport,pleaseemail:sam.royston@childrenssociety.org.ukorvisitourwebsiteatwww.childrenssociety.org.uk/fairandsquare