Of the 8.4 million children in English state schools, 3.4 million are eligible to get a free meal at school each day. Just under 2 million of these children are eligible through the means-tested system, which includes children whose families are receiving certain means-tested benefits and on very low incomes. Since 2014, all children in the first three years of primary school -Reception, Year 1 and Year 2 -have been eligible for free school meals.Options to expand free school meals have been frequently discussed. London Mayor Sadiq Khan recently announced that, in 2023-24, all primary-age children in state schools in London will be eligible for a free school meal, expanding eligibility by 270,000 pupils beyond the 550,000 who are already eligible. Other proposals suggest expanding entitlement to free school meals by increasing the earnings threshold for eligibility from the current £7,400 a year (after tax). For example, the National Food Strategy suggested a threshold of £20,000 a year after tax.In this report, we discuss the options and trade-offs in expanding free school meals in England.We focus on several potential reforms that would expand the generosity of the free school meal system, either by increasing the value of free school meals or by expanding eligibility to a wider range of pupils, and set out the costs of these policies, their distributional impacts, and their potential effect on parents' work incentives.
Key findings1. Just under a quarter of pupils in England are eligible for means-tested free school meals this year, compared with a long-run average of about one in six.The recent rise in eligibility is mainly the result of 'transitional protections' that exist due to replacement of the legacy benefit system with universal credit, but it also reflects changes to the labour market during the pandemic. Total spending on free school meals throughout term-time is around £1.4 billion a year in England.2. Evidence from England and internationally suggests that free school meals reduce the amount that families spend on groceries, but usually by less than the value of the meals (suggesting that families respond partly by increasing the quantity or quality of food they consume). While the evidence for health benefits is mixed (though generally positive outside the United States), there is a fairly strong evidence baseThe policy menu for school lunches: options and trade-offs in expanding free school meals in England The Institute for Fiscal Studies, March 2023 3 suggesting that children who receive free school meals benefit academically, largely because school meals on average offer better nutritional value than packed lunches. Some of these benefits persist into adulthood.3. Funding for free school meals has not kept pace with inflation. Since 2014, the permeal funding rate has lost 16% of its value in real terms. The funding rate currently stands at £2.41 per meal; if it had increased in line with inflation as measured by the Consumer Prices Index, it would now be £2.87. Increasing the funding rate t...