Are you losing out by not using Edenred?

The Free School Meal voucher scheme is now up and running, however we do understand that a number of trusts are still implementing a number of different approaches. This includes:

• Using the Edenred scheme (although there have been some teething problems)
• Supplying vouchers sourced locally (i.e. purchasing privately from supermarkets)
• Providing food parcels from school
• Providing meals from school facilities

Many Trusts may have used a combination of the above to continue delivery of meals, however each has had their own cost implications. It was previously announced by the government that no trust would lose out and that extra funding would be available if one of the options you selected cost you more money. Further guidance on the additional funding has however been released, which does add some questions over the additional funding.

They key statement in the guidance is “Funding will be available to schools that are unable to meet such additional costs from their existing resources, or which they could only meet by drawing down on reserves and undermining their long-term financial sustainability.
While we are not asking schools to draw on existing reserves to meet these costs, we do not expect schools to make a claim against this funding if they are anticipating that they will be able to add to their reserves in the 2020 to 2021 financial year.” 

It is clear from this that the ESFA expect as many costs as possible to be met by existing budgets. There is a risk therefore if you continue to use an alternative scheme, and incur additional costs, that these will need to be met from your existing budget and that additional funding may not be available. 

We therefore recommend that you urgently review your budgets and assumptions for the rest of the year, to see whether you will be eligible or not. It is worth calculating what costs you will be saving elsewhere in the coming months, as you may make some savings (light, heat, service contracts etc) which can cover the additional costs rather than the extra funding. The national voucher scheme may end up being the only scheme that does not cost you money, however you will need to make sure that you are satisfied that it practically works for you also.

Finally, as with all decisions, you will be governed by the Academies Financial Handbook and will need to bear in mind if any actions could be considered contentious, for example if the public or parliament thought you were being double funded for certain items.

If you have any questions please contact your usual Bishop Fleming contact.