Fears rising costs will force school catering firms to pull out of contracts

theguardian.com:

Soaring costs are putting the school food industry under “considerable strain”, prompting fears that some catering firms will be forced to pull out of contracts before the start of the next academic year.

With food prices up by 20%, and staff and energy costs also rising, the sector has warned that schoolchildren will be served “poorer quality meals” in September as catering firms look for cheaper options to fill stomachs.

The 7p uplift in funding for universal infant free school meals (UIFSM) from £2.34 to £2.41, announced by the government this week, was described as “just not enough” by campaigners, who said it applies only to children in reception and the first two years of primary, and in any case falls well short of inflation.

Smaller firms providing catering services to schools are said to be “at breaking point” as they don’t benefit from the economies of scale that larger firms may enjoy, and are more exposed to rising costs.

LACA, which represents more than 3,000 school food providers who deliver 3m lunches in 22,000 schools every day, warned that some firms will struggle to meet school food standards in September with current levels of government funding.

“Many of our members are at breaking point, the industry needs meaningful investment,” a LACA statement said. “LACA have long called for an increase to a minimum of £2.47 [for UIFSM], in line with [other] free school meal funding and for this to rise annually with inflation.

“Our members have made it clear that without this increase they will find it hard to meet the school food standards in September. For many children this is their only hot meal of the day, which is why it is more urgent than ever that caterers receive sufficient funding.”

“The school food industry