Industry expert: Education

The education catering sector is facing one of its most challenging periods in recent memory. Rising food prices continue to dominate budgets, while the steep increases to National Minimum Wage and National Insurance contributions, alongside new employment law reforms from the Labour government, will place further pressure on caterers.

Other proposed changes – such as alterations to statutory sick pay and expanded union powers, where representation can occur even if the employee does not request it - will require careful navigation by operators already balancing tight margins. There is also growing uncertainty around Universal Infant Free School Meals (UIFSM).

With the government facing a £5 billion fiscal gap, many in our sector worry UIFSM could be at risk. However, instead of scaling back, I believe the Free School Meals (FSM) model itself needs an overhaul.

Currently, every school – regardless of size – is allocated the same amount of funding per meal. This one-size-fits-all approach fails to reflect the realities of catering, which is driven by economies of scale. Larger schools can deliver meals at a significantly lower cost per pupil than smaller schools, yet the funding model does not account for this disparity.

We think an alternative system that introduces both a fixed and variable element is needed. By applying a £30,000 fixed subsidy per school, alongside a £1.35 variable meal subsidy, smaller schools receive the support they need while larger schools still benefit from fair funding. When tested against current FSM and UIFSM rates in England, this model comes out £1.7m cheaper – proving that UIFSM is not just viable, but more achievable than ever before.

Importantly, while we welcome the extension of FSM eligibility to households on Universal Credit, we hope this does not signal a move towards a fully means-tested system. Universal provision remains the fairest and most effective way to ensure no child misses out on a hot, nutritious meal.

At the same time, schools are increasingly looking to their catering partners for innovation – from data-led menu forecasting to cashless, pre-ordering systems that reduce waste and improve efficiency. This appetite for new approaches has underpinned Dolce’s own growth: for the new academic year, we’ve secured 102 additional school contracts (see News page 6), taking our meal provision to more than 30m school meals annually.

Today, we’re proud to cater for one in 20 schools in England – and that impact has been recognised. Dolce was recently crowned Contract Caterer of the Year at the Public Sector Catering Awards, a significant win for our team, and also achieved the number one spot in ProVeg UK’s first-ever School Contract Caterer Ranking. These milestones reflect not only the scale of our operations, but the value schools place on fresh thinking, resilience and innovation in education catering.

As the sector faces into a period of change and challenge, our focus at Dolce will remain on supporting schools with the innovation, flexibility and partnership that they need to deliver nutritious meals to every child, every day.

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