Council to axe school meal service as costs rise

The council said the school meal market was rapidly changing

Leicestershire County Council is to axe its school meals service from the end of the academic year.

The authority currently runs a company - Leicestershire Traded Services (LTS) - which has a contract to provide catering to 119 schools, with about 20,000 children.

Bosses said the school food service was set to make a surplus this year for the first time since the Covid-19 pandemic, but that the long-term outlook was poor.

Schools are being offered help to find alternative catering for the start of the new academic year next August, the council said.

The council's cabinet took the decision to close the service in a meeting behind closed doors in July before the matter was discussed at a scrutiny meeting on Monday.

The service made a loss of £329,000 in 2024-25, the council said.

But Richard Hunt, the authority's head of catering, hospitality and country parks, said the service was on course to make £41,000 against a target of £298,000, this financial year.

He said its projected earnings were higher this year because the company acquired nine new contracts after the February half-term, following the closure of Leicester City Council's own school catering service in March.

He said: "Despite our improved financial position, the world of school food is changing rapidly with retendering of services by academy trusts and the desire by schools for an overall cheaper service which LTS cannot provide."

Mr Hunt said all schools and staff had been notified and the council was supporting schools in finding a new caterer.

The council also said funding from the government to pay for Universal Free School Meals (UIFSM) had not kept pace with inflation.

A Department for Education spokesperson said it had increased funding for UIFSM to £2.61 per meal for the 2025-26 academic year.

They added: "Schools are responsible for providing free meals to eligible children and we work with the sector and local authorities so that children continue to have access to this vital support in all circumstances."