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 £1.45 per meal to £1.50 per meal from September 2004, an increase of 3.4%.

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 meals is taken into account in setting school budgets.

2.2 Last year the cost of a school meal was increased from £1.40 to £1.45, an increase of 3.6%.

3 Catering Cost Inflation

3.1 One of the factors to be taken into account in determining school meal price increases is the level of cost inflation being experienced in the catering industry. The combined catering staff and food price index shows an annual increase of 3.7% to December 2003.

3.2 From an analysis of likely school meal prices in neighbouring authorities, it is likely that a charge of around £1.50 per meal will be common from September 2004.

4 Impact on Schools Delegated Budgets

4.1 Allocations to schools for 2004/5 have been based on 184 "feeding days". Inflation of 2.9% has been added to this figure for the whole of the financial year. The comparison between average feeding costs and average budget costs are set out below:

Average costs for 2003/4 are

Number of feeding days @ 1.45 62

Number of feeding days @ 1.50 122

Average costs for 2003/4 1.485

Budget Average Cost

Funding at November 2002 price 1.44

Funding Inflation 2.9%

Budget cost for financial year 2003/4 1.482

4.2 The school budget allocation is very marginally below the average cost to schools of free school meals charged at £1.50. In 2003/4 the budget allocation to schools was marginally above the cost of free school meals. If the meal price was reduced to £1.49 the budget allocation and the cost to schools of free school meals would be in balance. However, in view of the marginal difference and the advantages for cash handling an increase to £1.50 per meal is recommended.

Recommendation

That the school meal price should be £1.50 from September 2004.

Section 100D Local Government Act 1972 - Background Documents

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

Report by HC3S on catering industry inflation and school meal prices in neighbouring LEAs.

NB The list excludes:

1. Published works

2. Documents which disclose exempt or confidential information as defined in the Act.