Warning over ‘rise in school dinner prices’ (From York Press)

Warning over ‘rise in school dinner prices’

9:56am Tuesday 27th April 2010 in

• Skip social links
• Print
• Email
• Comments(7)

PARENTS in York could face inflation-busting hikes in the price of school meals next year unless savings can be found.

Uncertainty over whether councils across the UK will continue to receive Government cash to keep down the cost of pupils eating at school after the next school year has sparked fears the bill may rise.

York currently has the most expensive school meals in Yorkshire at £2.15 a time, with City of York Council paying a subsidy to the firm contracted to provide them.

The authority’s executive is today expected to approve the appointment of a new company, ISS Facility Services – Education, to take on the contract in the 2010/11 academic year in place of the current holders, North Yorkshire County Caterers.

A report going before today’s meeting said the contract had “underperformed” in 2009/10 and the firm responsible for it needed a £94,000 top-up to break even, which the Government-provided School Lunch Grant can fund.

That means the council must pay a 27p subsidy per meal on top of the cost to parents. Officers say ISS have quoted a 19p subsidy. Giving ISS the contract for an initial five-year period from September would allow school meal prices to be pegged at £2.15 in the 2010/11 academic year.

But the report adds: “The School Lunch Grant is only guaranteed until the end of 2010/11, so this level of subsidy is unlikely to be sustainable in the longer term.

“Further cost reductions will therefore need to be identified during 2010/11 to avoid above-inflation increases to the selling price.”

The current cost of York’s meals compares with £1.30 in Hull, £1.75 or £1.82 depending on age in Leeds, £1.90 in East Yorkshire and £2 in North Yorkshire County Council’s area.

Maggie Tansley, the city council’s head of planning and resources, said any price decisions from September will be made later in the year following consultation with schools.

She said: “The School Lunch Grant comes from central Government funding, and if the grant ceases after 2010/11, either the selling price will have to rise or the cost of the contract be reduced.”