One option is for schools and nurseries to arrange their own catering provision. There is a well-established private sector market of school food providers operating successfully in Hampshire, from which schools can select.
Another option is to provide a managed outsource of the service which schools and nurseries could buy into. This option would see the County Council procure and manage the supply of meals from alternative providers, on behalf of schools and nurseries.
Education Catering, formerly known as HC3S, has experienced significant financial pressure in recent years due to the combined impacts of rising food and staff costs.
To cover its costs, the local authority has needed to increase the price of its school meals above the funding rate provided by Government to schools. This has resulted in a loss of business and as such, the County Council can no longer continue providing a non-statutory in-house service in the long term without making a loss.
A Hampshire County Council spokesperson said: “While we are exceptionally proud of all that our Education Catering service has achieved, including national recognition as a leader in its field, with several awards and an ongoing commitment to UK sourced produce, the financial challenges we are facing mean that our priority must now be the provision of statutory services.
“With the considerable cost increases we are facing, which remain unmatched by an equivalent increase in the funding received directly by schools, we must regrettably consider closing this discretionary service. However, we will continue to lobby Government for additional funding for schools to provide good quality meals.
“All existing school and nursery customers of the Education Catering service have been informed of the consultation and we will ensure that their feedback is fully reviewed and considered ahead of any future decisions. We are grateful for the support that staff and customers have shown for the Education Catering service throughout what continues to be a very challenging period in the school food industry, both locally and nationally.”