Archived decisions

Contact: Mr Terry Rath, Education Officer Tel. 01962 846457

1. Summary

1.1 This report seeks approval to an increase in the cost of school meals from £1.35 per meal to £1.40 per meal from September 2002, an increase of 3.7%

2. Background

2.1. Since April 2002 school meals budgets have been delegated to all schools, but the decision about the price of the school meal remains as a decision for the Education Executive Member. This reflects the continued need to ensure that the cost of providing free school meals is taken account of in school budgets.

2.2. In June 2001 the Education Committee agreed an increase of 10p per meal from September 2001. This level of increase (8%) was needed to take into account the exceptional costs facing Hampshire Caterers, the major supplier of school meals, as a result of the move to single status for County Council employees. The Committee also resolved that the cost of school meals should be reviewed again in June 2002. As there are no Executive Member decision days in June, this report has been prepared for May.

3. Catering Cost Inflation

3.1. One of the factors taken into account in determining school meal price increases has been the level of cost inflation being experienced in the catering industry. Using the All Employees : Hotel and Catering and the General Index of Retail Prices - December 2000 to November 2001 inflation in the industry is running at 3.7%. Using the same indices based on December to December the rate of inflation is 4.7%

3.2. From analysis of likely school meal prices in neighbouring counties, it is likely that a charge of £1.40 per meal will be common from September 2002.

4. Impact on Schools Delegated Budgets

4.1. Allocations to schools for 2002/03 have been based on an increase of 8 in the number of `feeding days' from 2001/02. Inflation of 2.5% has been added to this figure for the whole of the financial year; this is sufficient to fund the part-year increase (September 2002 to March 2003) of 3.7%. The comparison between average feeding costs and average budget costs are set out below:

Average costs for 2002/03 are

Number of feeding days at £1.35 71 £0.50

Number of feeding days at £1.40 122 £0.89

Average cost for 2002/03 £1.39

Budget Average cost

Price at November 01 £1.35

Funded Inflation 2.5%

Budget Average Cost £1.38

4.2 The allocation already included in school budgets is sufficient to ensure that they are able to meet the cost of an increase in free school meal prices to £1.40 from September. This does depend on forecasts of the take up of free school meals.

Recommendation

That the school meal prices should be £1.40 from September 2002.