The Numbers Don’t Add Up: Why School Catering Budgets Are Breaking

The Numbers Don’t Add Up: Why School Catering Budgets Are Breaking

Over the past few weeks, we’ve reviewed hundreds of school catering budgets and the same issue keeps emerging: the government’s funding for Free School Meals (FSM) no longer reflects the real cost of providing them.

In April, FSM funding increased by just 3p, from £2.58 to £2.61. That’s a rise of just over 1%. Compare that with the pressures schools are up against.

Schools are being asked to do more with less, and those working in education whether in leadership or in the kitchen are the ones making it work against the odds.

Caught in the Middle

Schools want to do the right thing. Many are reluctant to raise the price of paid meals because they know families are struggling. But this puts even more pressure on already stretched budgets, with some schools quietly subsidising meals from other funding pots (or in some cases their own pocket!). 

Teachers, business managers, and in-house catering staff are doing incredible work in difficult circumstances. But the reality is: without the right tools, support, or buying power, even the most dedicated team can only do so much.

Why In-House Teams Are Under Pressure

We’ve recently spoken to two schools who manage catering internally. Their kitchen teams care deeply about feeding children well and they do it with heart. But they’re struggling to manage rising costs, changing food standards, and the commercial realities that weren’t so pressing a few years ago.

None of this is about blame. It’s about recognising that the goalposts have moved. What worked before may no longer be sustainable, and without visibility of market pricing or access to economies of scale, it’s hard for in-house operations to stay on top financially.

There is Another Way

At Procure, we’ve worked alongside schools for years. We understand your priorities; good food, happy children, stretched budgets, and overworked staff. We’re not here to criticise what you’re doing; we’re here to help you make it easier.

Our support has helped schools:

We handle the commercial side so your team can focus on what matters most – feeding children well, every day.

This Isn’t About Outsourcing for the Sake of It

This is about giving you options. Giving your catering team a support system. And making sure your school is making the best use of its budget, not just surviving, but doing more with the same, or even less.

If you’re feeling the squeeze, now is the time to review your provision. We’re here to help you do that fairly, transparently, and with full respect for the work your team is already doing.

It all starts with a chat. Contact one of our educational procurement specialists today.