Hampshire County Council Schools Forum Item 9 1 May 2014 Universal Free School Meals Report of the Director of Corporate Resources – Corporate Services and Director of Children’s Services Contact: Andrew Minall 01962 846408; andrew.minall@hants.gov.uk; Kathryn Stevens 01962 845185; Kathryn.stevens@hants.gov.uk 1 Introduction In September 2013 the Government announced the introduction of Universal Free School Meals (UFSM) to all infant age pupils attending any state funded school. From September 2014 all primary and infant schools have a statutory duty to offer free school meals to all year R, 1 and 2 pupils. This paper looks at the requirement set out by the Department for Education (DfE) and provides details regarding how the funding will be distributed. 2 Background The introduction of universal free school meals follows a recommendation in the School Food Plan, an independent review published in July 2013, which aims to bring about a significant increase in the numbers of children eating healthy and well balanced food in schools. The decision was made following a two year pilot scheme across other Local Authorities. The pilot scheme showed an improvement in health, attainment and behaviour of this group of pupils following the introduction of free school meals to all. Initial plans were to provide every infant age pupil with a hot meal however that has since been amended to hot or cold nutritious meal to accommodate pressures around the delivery of the offer. Schools are however legally required to provide meals that comply with the School Food Standards. The government has allocated revenue funding of £450 million for the provision in 2014/15, plus £22.5 million transitional funding for small schools and £150 million capital funding for renovating kitchens and dining areas. The DfE will provide revenue funding of £635 million in 2015/16. Under current rules, pupils are entitled to free school meals if their parents claim means-tested out-of-work benefits (such as Income Support) of Child Tax Credit (except Working Tax Credit) with an annual income of no more than £16,190. 3 Pilot The pilot was conducted between the autumn of 2009 and summer of 2011 involving three local authorities. Two of the local authorities piloted the ‘universal’ offer to all infant age pupils and the other local authority extended the entitlement to include families who were on Working Tax Credit. The pilot scheme noted that the universal offer improved outcomes among children from less affluent families; it increased the take up of school meals among pupils who were already eligible for free school meals before the pilot was introduced. School staff noted that the universal offer reduced the ‘levelling effect’ on the quality of lunches which was currently happening as the quality of packed lunches varied considerably by socio-economic background. Pupils in the pilot areas were found to eat more healthily and perform better academically and these improvements were most pronounced among the poorest pupils. Schools also reported improved behaviour and atmosphere, as a result of all pupils (and increasing number of teachers) eating together every day. 4 Revenue Funding Per Pupil Funding Schools will be allocated a flat rate of £2.30 per meal taken, based on actual take up by newly eligible infant pupils, which will be measured the by a new indicator in the school census of October, January and May. This new indicator will be introduced from October 2014. Schools are currently charged £2.00 per school meal by the main Hampshire provider, HC3S. An initial allocation will be paid to Local Authorities in June 2014 and will be based on pupil data from the January 2014 census with the following assumptions; 87% of newly eligible pupils will take meals Those pupils will take 190 school meals over the course of the full academic year. The provisional allocation will be revised later in the academic year based on actual take up data derived from an average of October 2014 and January 2015 school censuses and payment for the third term of the 2014/15 academic year will be adjusted accordingly. -2- Schools will receive their initial allocation in September 2014. Later in 2015, schools will receive the balance adjusted to reflect how many children are actually eating a free school meal. Schools will be notified of their provisional full year allocation in June 2014. The initial payment will represent 2 terms worth of funding (for 2014/15 academic year). The DfE has stated that the funding methodology for 2015/16 will be confirmed in due course and funding beyond 2016 will be considered as part of the next Spending Review. Transitional Funding One-off funding worth a minimum of £3,000 will also be provided in 2014/15 for small schools to help with transitional costs. For the purposes of universal free school meals, small schools are defined as those having fewer than 150 total pupils as at the January 2014 census. The one-off funding (known as transitional funding) will be paid in June 2014 and can be spent however schools choose in support of their implementation of the policy. This funding will not be adjusted at a later date in the case of where the actual take up is different. Transitional funding will be based upon infant pupils who were not eligible for FSM in the 2014 census based on the units of funding in the table below. Any schools which amount to less than £3,000 will be topped up to this minimum level; 5 Total NOR in latest census Unit of funding per non-FSM eligible pupil Minimum additional funding per school £3,000 1 – 30 £210 31 – 60 £190 61 – 90 £160 91 – 120 £135 121 – 150 £100 Work Undertaken to Date Childrens Services, HC3S and Property Services have developed a database showing the current capacity for meals in school kitchens; the anticipated required school meal number and the dining space capacity to identify hot spots. To this has been added the cooking solutions including ovens, hotplates, hobs and ventilation systems to ensure the emissions regulations are met. -3- Discussions with food suppliers have taken place to ensure the logistics are considered and the HC3S Operations Managers are meeting/have met with Headteachers to ensure further planning is undertaken to ensure the service is delivered well from September. This process has been undertaken for all schools and not just those schools that subscribe to HC3S. 6 Costing There are currently 321 infant and primary schools in Hampshire and 15 special schools with infant age pupils attending. Based upon the January 2014 census there were 44,482 infant age pupils, broken down as follows; Phase Infant/ Primary Year R Year 2 Total 14,790 14,874 14,514 44,178 93 103 108 304 14,883 14,977 14,622 44,482 Special Total Year 1 Based on the January 2014 census there were 5,078 pupils eligible for FSM under the current criteria, broken down as follows; Phase Infant/ primary Special Total Year R Year 1 Year 2 Total 1,699 1,678 1,621 4,998 17 33 30 80 1,716 1,711 1,651 5,078 There will, therefore, be 39,404 (44,482 – 5,078) newly eligible pupils for the universal free school meals funding. Based on initial modelling derived from the above figures and the assumptions detailed in paragraph 4.3, Hampshire will receive in the region of £15 million (87% of 39,404 = 34,281 * 2.30 per pupil per meal * 190 days) for per pupil funding. For transitional funding, there are currently 102 infant age schools in Hampshire with fewer than 150 pupils. There are 87 infant and primary schools and 15 special schools. Transitional funding is forecast to be £1.2 million based on initial modelling. -4- 7 Capital Funding Hampshire has been allocated £3.4 million in capital funding. This includes £3.05 million for maintained schools and just under £0.4 million for Voluntary Aided schools. Voluntary Aided schools allocation is separate to reflect the fact that the Governors raise 10% capital costs. Therefore, only 90% is provided by the DfE. Local Authorities will need to decide on their priorities for using the capital funding and how best to target their share at individual schools in order to meet the universal infant FSM entitlement. At his Decision Day on 26 March 2014 the Executive Lead Member for Children’s Services agreed to set aside total resources of £6.2 million in the capital programme for this work. The high level feasibility work that was undertaken suggested that up to this amount is required to ensure delivery of the tight programme before September 2014. A detailed list of the costed schemes will be reported to the July Decision Day. Academies will need to bid for capital funding The DfE have stated that the results of the most recent Academies Capital Maintenance Fund (ACMF) bidding round will also be announced shortly. 8 Risk Analysis The introduction of this scheme poses the following risks for schools; 1) Non HC3S subscribers, particularly in rural areas, may face problems with economies of scale and the meal may cost in excess of the £2.30 allocation. The pilot scheme found that the actual cost of school lunches ranged from £1.90 to £2.60 across the two authorities. 2) Schools may possibly need to hire additional kitchen and dining area staff bringing additional cost pressures. 3) Not all pupils will take up the offer. The pilot found that only 90% of pupils actually took up the offer. The main reason for nonparticipation was due to the choice of food available not being to the pupils liking. This is a potential barrier for schools to overcome. Other reasons for non-take up of the offer could be due to food allergies, absences or religion. 4) Small schools may struggle to cope with the increased demand, not only in kitchen facilities but in the dining room also. To overcome these issues the government has suggested introducing staggered mealtimes and allowing pupils to eat in classrooms. The need to stagger mealtimes may cause associated timetabling issues. -5- 5) Schools will continue to have the freedom to set their own policies regarding packed lunches. Therefore Headteachers could ban packed lunches completely to promote the universal free school meals offer. This may be met with some resistance from parents and carers and the consequences of which will need to be considered. 6) There is concern that there will be no incentive for parents to declare FSM eligibility if already entitled to a lunch. Therefore, this may reduce the level of funding received through pupil premium. To overcome this issue the Local authorities involved in the pilot scheme adopted an approach where all parents had to complete a form, that way they can still record those parents eligible for free school meals. 9 Further Points to note The DfE has stated that the 2014/15 allocation for Deprivation Ever 6 FSM Pupil Premium will not be affected by the introduction of universal FSM for infant pupils. The DfE is considering how pupil premium is allocated to schools in the longer term. The Children and Families Act 2014 places a legal duty on primary schools to offer free meals to pupils in year R, 1 and 2. The legislation also includes a power to extend the policy to additional year groups in the future. 10 Recommendation It is recommended that Schools Forum notes the information provided in this report. -6-