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NAC230621 DirApp School Meals Debt

North Ayrshire Council · 21 June 2023
Back to North Ayrshire Council — 21 June 2023 and its agenda

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NORTH AYRSHIRE COUNCIL 
21 June 2023 
North Ayrshire Council 
Title:    School Meals Debt 
Purpose:  To provide options to Council in response to the Council motion
on 17 May 2023 to ‘scrap all school meal debt by the start of the
2023-24 school year’. 
Recommendation:  It is proposed that Council considers the options contained within
this report in response to the Council motion of 17 May 2023 to
‘scrap all school meal debt by the start of the 2023-24 school
year’. 
1. Executive Summary 
1.1 At the Council meeting on 17th May 2023, it was agreed ‘in principle to scrap all school
meal debt by the start of the 2023-24 school year; and that a report be brought to the
June 2023 meeting of the Council outlining options including financial implications on
how to achieve this aim.’ 
1.2 This report sets out the background to this issue and provides options for Council to
consider. 
2. Background 
Good Practice Principles for School Meal Debt Management 
2.1 Good Practice Principles for School Meal Debt Management have been developed by
COSLA, with partners from across Local Government (ADES, ADES Resources
Network, ASSIST FM, Directors of Finance, and IRRV). The purpose of these principles
is to promote good practice in the management of school meal debt, whilst retraining a
level of flexibility to enable local authorities to design and implement approaches which
align with the unique needs and circumstances of their communities. Decisions around
school meal debt management, including all aspects of policy and practice, remain at
the discretion of each local authority. 
2.2 COSLA, in partnership with ASSIST FM, ADES, ADES Resources Network, Directors
of Finance, and IRRV, developed a survey for councils to complete on the subject of
school meal debt, with the intention of gaining a better understanding of the situation
and context surrounding school meal debt policy and practice; the level of need across
the country; and the use of the power to grant discretionary free school meals.

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2.3 28 local authorities responded by the end of September 2022, with key findings from
this exercise including the following: 
• Councils are aware of the issue of school meal debt, and many are currently actively
considering how best to approach this in terms of policy and practice.
• A small number of local authorities have recently chosen to write off existing school
meal debt in their area.
• School meal debt management spans departments. Education, catering, and finance
departments within local authorities, as well as individual school staff, can play a role
in how this is approached.
• Whilst in the majority of cases school meal debt accrues because families are
experiencing financial hardship, it was identified that this is not the case in every
situation. A number of other reasons behind the accrual of debt were highlighted,
including pupils forgetting or losing money, and families waiting to make large, one-off
payments to clear debt. 
• Some councils exercise their ability to grant discretionary free school meals, in
instances where a family does not meet the eligibility criteria but is in need. Cost and
budgetary constraints were identified as barriers to this being used by some areas. 
Development of Good Practice Principles 
2.4  In November 2022, COSLA’s Children and Young People Board considered the issues  
of school meal debt, including the research and reports outlined above and the findings
from the Local Government survey, and agreed to the development of good practice
principles. 
2.5 COSLA highlighted that whilst Local Government is fully committed to ensuring positive
and effective approaches are in place to support children, young people and their
families, the current financial and budgetary pressures facing councils are severe and
will necessarily impact on what is possible. The Scottish Government’s Resource
Spending Review presented a flat cash position for Local Government, with no
additional core funding for Local Government in the next three years. The 2023/24
Budget also indicates a continuation of the significant funding pressure faced by Local
Government for at least the past decade. 
2.6 The pressure on core budgets as a result of these real-terms cuts and increased
demand, compounded by inflation, the cost-of-living crisis, and the impact of Covid-19,
is becoming increasingly visible and leaves councils with no alternative than to make
difficult choices about service funding levels. This will necessarily impact on what funds
can be made available to support families in the context of school meal debt, though
this remains a priority. 
2.7 COSLA Good Practice Principles 
North Ayrshire Council adheres to and in some cases exceeds the recommendations
of the COSLA guidelines. The good practice principles are listed here, accompanied by
the North Ayrshire status in relation to each principle:

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1) COSLA: Meeting the needs; upholding the rights; and supporting the welfare of children,
young people, and their families in line with their individual circumstances should be of
paramount concern in the design and implementation of local authorities’ school meal
debt policy and practice. Consideration should be given to how the views of children,
young people and their families can be sought and drawn upon to help shape local
authority policy and practice. 
North Ayrshire: The primary school procedure and the recently revised procedure for
management of secondary school meals debt are aligned to the good practice principles. 
As such the processes quickly identify those pupils who accrue debt via school meals and
alerts Welfare Support staff in schools.  This allows for early interventions to take place
by contacting the family and arranging supports which may be required e.g., support to
complete a free school meal application, referral to Money Advice services, Customer
Services or help with Housing support. 
2) COSLA: Local authorities’ approaches to school meal debt management, including all
aspects of policy and practice, should be compassionate, proportionate and seek to
minimise as far as possible the stigmatisation of children, young people, and their families. 
North Ayrshire: As above, the debt management policies for primary and secondary
schools meet the requirements of this principle. There is also no interaction at the till point
to identify any pupil who has insufficient credit in their account for a meal. 
3) COSLA Processes for school meal debt management should be as clear and accessible
as possible. Where barriers are identified, e.g., parents/carers face difficulty navigating
online systems, consideration should be given to what support can be provided to address
this. 
North Ayrshire: Support is available from schools, including School Welfare Officers and
notably, Customer Services, for those parents and carers who experience barriers. This is
widely publicised through a variety of channels. 
4) COSLA: A co-ordinated approach should be taken to designing and implementing school
meal debt policy and practice. The appropriate role of relevant departments (e.g.,
education, catering, finance, and revenues & benefits) within local authorities, as well as
individual school staff, should be considered, as well as how they should work together. 
North Ayrshire: A realignment of the Facilities Management (FM) service into the
Communities and Education directorate was designed to integrate and improve how
relevant services work together to ensure better outcomes for children, young people, and
their families. The revised debt management policy for secondary schools has been co-
produced between Education and Facilities Management to ensure a dignified meal
provision is in place and all aspects of the process have been considered.

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5) COSLA: Local authorities should consider setting a threshold at which unpaid sums will
formally become ‘debt’ and be treated as such. A threshold of around one month’s worth
of meals is suggested, based on the fact that some families choose to clear debt after
each pay-day. 
North Ayrshire: The Council no longer formally raises debt as this ceased during the roll
out of universal free school meals (UFSM). All primary school meal debt on the debtors’
ledger has already been written off.  Debt does accrue on our online payments system for
those not covered by UFSMs (primary 6 & 7s), and the Council issues weekly texts to act
as reminders to parents/carers to top up their accounts.  This text is designed to include
information to encourage access financial support if required. 
6) COSLA: Local authorities should consider undertaking a routine review of families’
summary debt position, to reduce the risk of families accumulating large debts without the
authority or school being aware of this and enable the timely provision of support where
this is needed. 
North Ayrshire:  The intervention at secondary school level allows conversations/early
intervention by Welfare Officers with parents/guardians.  The approach recommended is
“No Wrong Door” which allows signposting or referrals to other services to assist the family
as required.   
7) COSLA: Consideration should be given to effective communication practices to ensure
that parents/carers receive the right information, at the right time, in an accessible manner,
from the most suitable person.  
North Ayrshire: For primary school debt (primary 6 & 7 pupils) a weekly text is issued
noting the debt balance but also provides contact details for those requiring financial
support. As noted above secondary schools have a personal intervention via Welfare
Officers directly with the families accruing debt. 
8) COSLA: Consideration should be given and efforts made to promote, maximise and
address any barriers to take-up of free school meals (and other available support e.g. the
school clothing grant; free bus travel for under 22s) for those families who are eligible. A
number of local authorities have auto-award systems in place whereby free school meals
are automatically applied to families who receive other qualifying benefits, and this
approach should be considered as a way to support access and take-up. The Child
Poverty Action Group’s Cost Of The School Day project also provides practical tips,
training and materials to reduce costs for families. 
North Ayrshire: From this year due to the changes in relation to the DWP Memorandum
of Understanding in relation to data sharing, the Council now requires to to revert to asking
customers to provide proof of their income for eligibility. This will now be the case for all
local authorities. Customers can be supported over the telephone and at our customer
service centres.  Emails and text messages will be sent out to existing applicants
encouraging them to apply as well as communications via Council social media and
website.  We will also be hosting further drop-in sessions over the summer months to

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assist people to apply for Free School Meals, School Clothing Grants, Education
Maintenance Allowance and Under 22 Travel.   
9) COSLA: When staff become aware that a household is facing financial or other difficulties,
efforts should be made to ensure that wherever possible families are signposted to, and,
if appropriate, supported to access, available sources of support which are relevant to their
needs. This could include: 
o Financial advice and support services
o Income maximisation/ welfare rights support
o Cost of living support, including cash payments
o Employability support 
o Social work or care support
o Support for unpaid carers 
North Ayrshire: The revised debt management procedure for secondary schools
supports this principle. The primary school approach encourages families to contact the
Customer Contact Centre where a wide range of support is available. 
10) COSLA: All local authorities have the power to grant discretionary free school meals to
pupils who do not meet the national eligibility criteria, where families are experiencing
financial hardship. Consideration should be given to whether and/or how the local
authority will use the provision of discretionary free school meals as a mechanism for
supporting families facing financial hardship who are ineligible for free school meals.  
North Ayrshire: North Ayrshire has a policy that no child will miss a meal due to lack of
funds. 
11) COSLA: Decisions on clearing school meal debt across an authority should remain at
the discretion of each local authority. 
North Ayrshire: All debt for primary 1 - primary 5 pupils was written off as the roll out of
UFSMs continued.  Aged debt for primary 6 & 7 pupils has also been written off. The debt
on the online payments system for primary 6 & 7 is currently around £80k. Debt is not
pursued. Decisions on debt for secondary schools is at the discretion of the school whilst
assessing individual family circumstances and putting supports in place as required. 
12) COSLA: Consideration should be given to the range of approaches and mechanisms
that could be used to support families or clear debts in particular cases where a need is
identified, within the flexibilities and discretion afforded to local authorities and Head
Teachers. For example, consideration could be given to: 
12a) COSLA: Using school hardship funds or Pupil Equity Funding (PEF) to support
discretionary meal provision or debt clearance in particular cases.

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North Ayrshire: Schools do not have specific hardship funds. They can of course use
their general school fund accounts for these reasons, at the discretion of the school.
They can also choose to use their PEF allocation, which is set on a multi-year basis. 
12b) COSLA: Flexible use of available free school meals, accounting for absence and take-
up rates amongst pupils who are registered for FSM. 
North Ayrshire: The Council has an approach that no child or young person will go
hungry therefore anyone presenting at the till with a meal will be served whether they
have credit in their account or not.  As a result, the Council is already funding meals for
those who do not have credit to pay for a meal.  Debt in primary schools is currently
around £80k.  This has accrued due to pupils presenting for a meal however they are
not registered for a FSM and do not have sufficient credit in their account. Debt in
secondary schools is currently around £14k.
Current Situation in North Ayrshire
2.8   Under current arrangements children from low-income families are already eligible for
free school meals, including those whose parents are in receipt of Universal Credit,
Income Support, Child Tax Credits, or other income-based allowances:
• Universal Free School Meals (UFSMs) (applies currently to all primary 1 – primary 5
pupils: 6617.  
• Free School Meals (FSMs) applications for primary 6 & 7: 902 (30% of school roll).
• FSMs for secondary: 2020 (26% of school roll). 
2.9 For those who have built up school meal debt, which in some cases will be ongoing
legacy of the Covid pandemic, the Council follows the principles detailed in COSLA’s
Good Practice Principles for School Meal Debt Management. 
2.10 Under our revised procedures a number of actions have been progressed, including:
• Debts in relation to Primary 1-5 pupils have already been written off, reflecting their
entitlement to universal free school meals.
• Facilities Management works closely with Customer Services, who advise the Service
of any new free school meal applicants following an assessed need. 
• New applicants for free school meals have any historical debt written off.
• Aged debt which was on the debtors’ ledger in relation to Primary 6-7 pupils has also
now been written off following the anticipated roll-out of Free School Meals for these
year groups. 
• All correspondence with families in relation to informing them about the balance of their
school meals account is based on a positive interaction which informs and directs them
to the Council’s Customer Contact Centre number where they will receive advice,
support and guidance about their financial situation, and referral to Money Matters
should they require it. This is an important means of communication with families who
may need support and are unaware of how to access it or are reluctant to do so.
Ongoing contact with families via this mechanism ensures that we maintain contact
with them, and thus our ability to offer opportunities to support them.

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2.11 Irrespective of entitlement or debt levels, the current Council approach in relation to
discretionary school meals ensures all pupils (primary and secondary) who present for
a meal will be provided with a meal regardless of financial capability. This is a seamless
and discreet service, including through in-schools and partner referrals, with no
identifiers for those who are either entitled to free school meals or who do pay but have
no credit in their accounts. 
Financial Position
2.12  The value of school meal debt at 31 March 2023 was £80,139 for primary schools
(P6/7 only) and £13,902 for secondary schools. This compares to total income for the
year of £151,232 for primary schools and £788,093 for secondary schools. 
2.13    Any action to write off existing school meals debt could present risks to the Council in
its ability to collect future revenue in respect of school meals resulting in additional
budget pressures through non-recovery of current or future income. 
Primary schools
2.14 The value of school meal debt at 31 March 2023 was £80,139 for primary schools in
comparison to a total income for the year of £151,232. This process is managed
centrally by the Council.
2.15 Consideration has been given to the options in the COSLA Good Practice Principles
that school meals debt could be funded through PEF. However not all schools are in
receipt of PEF and some schools receive low levels of funding.  PEF is devolved to
individual schools and there would therefore need to be local consultation and
agreement at school level on any use of PEF allocations in this way.
2.16 Consideration has also been given to the options in the COSLA Good Practice
Principles that school meals debt could be funded through school funds. However,
adequate levels of individual school fund resources cannot be guaranteed due to local
variations, including reliance on fundraising to support this approach and this proposal
would also require consultation with individual school communities, including parent
councils.
2.17 The writing off of aged debt (historical invoices raised) in relation to Primary 6-7 pupils
has been funded through earmarked funds within FM. 
Options to fund the write off existing primary school meal debt
2.18 Option 1 
In recognition that school meals debt is in many cases a residual impact of the effects
of the Covid pandemic, the funds currently earmarked from FM’s revenue budget for
debt clearances on Ipayimpact (online system) could be used to fund the write off of
the majority of the existing primary school meals debt. The current debt is c. £80,000
and the current earmarked funds are £65,000. Primary school debt increases at
between £5,000 and £10,000 per month throughout the year, for which consideration
continues to be made within the FM budget. The current gap to write off existing debt

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would therefore be c. £20,000. This could be met from the Early Intervention and
Prevention Fund for Child Poverty and Cost of Living, PEF or relevant Communities
and Education directorate budgets. 
2.19 Option 2
Continue the current approach which meets or exceeds the COSLA Good Practice
guidance by making financial provision through earmarking funds on an ongoing basis
to fund the write-off of primary school debt aligned to the roll out of universal free
school meals, maintaining supportive contact with families. This removes the risk of
increased future non-payment of school meals due to a perception that the Council
has discontinued its monitoring of unpaid school meals. 
Future considerations and risks: primary schools
2.20 The commitment by Scottish Government to the future roll out universal free school
meals to P6 and P7 children will remove the need to pay and will therefore remove
the issue of school meal debt at primary school level.
2.21 In the interim, any future non-payment of primary school meals would require to be
resourced until the introduction of P6/7 UFSMs. This would create a budget pressure
of up to the value of current income (£151,232 p.a.) due to a possible unintended
consequence resulting in debt increasing if there is a perception that debt is not
pursued/written off, resulting in those who can pay not topping up their credit and
accruing debt. There are currently no additional resources to address this risk,
resulting in a potential budget pressure in the context of a potential £17m budget gap
for the next financial year. 
Secondary schools
2.22 The value of school meal debt at 31 March 2023 in secondary schools was £13,902
in comparison to a total income for the year of £788,093. These debts are currently
managed at individual school level and increase on a monthly basis throughout the
year. Debts are significantly smaller in secondary schools as pupils have a wider range
of options than to take a school meal.
2.23 Debts are currently managed at a school level and contact with parents/carers is done
via phone calls or text, on an individual basis. This allows a managed intervention via
a Welfare Rights Officer or Pupil Support Team to discreetly liaise with families to
ensure they are receiving all of the supports available, not just in respect of school
meals, but for wider signposting to other council services who may be able to assist
the family in other ways. They also discuss and share the Customer Services Contact
Centre number and the range of supports available. Secondary schools, in many
cases, absorb the debt in their own school funds. This early intervention is key to
supporting the pupils and families and debt accrual is one way of identifying those who
may need this support.

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Options to fund the write off existing secondary school meal debt
2.24 Option 1  
In recognition that school meals debt is in many cases a residual impact of the effects
of the Covid pandemic, the Early Intervention and Prevention Fund for Child Poverty
and Cost of Living, PEF or relevant Communities and Education directorate budgets
could be used to fund the write off existing secondary school meals debt (c. £15,000).
2.25 Option 2  
Continue the current approach which meets or exceeds the COSLA Good Practice
guidance, by making provision on an ongoing basis to fund the write-off by addressing
it within secondary school budgets, maintaining supportive contact with families and
removes the risk of increased future non-payment of school meals due to a perception
that the Council has discontinued its monitoring of unpaid school meals.  
Future considerations and risks: secondary schools
2.26 There is currently no expectation that funding for universal free school meals will be
extended to secondary school pupils, therefore the debt situation will continue. There
is also a possible unintended consequence of debt increasing if there is a perception
that debt is not pursued/written off and this may result in those who can pay not topping
up their credit and accruing debt. Current income from secondary school meals is
£788,093, therefore the financial risk is assessed to be significant. There are currently
no additional resources to address this risk, resulting in a potential budget pressure in
the context of a potential £17m budget gap for the next financial year. 
3. Proposals 
3.1 It is proposed that Council considers the options contained within this report in response
to the Council motion of 17th May 2023 to ‘scrap all school meal debt by the start of the
2023-24 school year.’ 
4. Implications/Socio-economic Duty 
Financial 
4.1 Option 1 to fund the write off of existing primary school meals debt would require
£65,000 of earmarked funding from FM budgets and c. £20,000 from the Early
Intervention and Prevention Fund for Child Poverty and Cost of Living, PEF or relevant
Communities and Education directorate budgets. 
4.2 Option 1 to fund the write off of existing secondary school meals debt would require c.
£15,000 from the Early Intervention and Prevention Fund for Child Poverty and Cost of
Living, PEF or relevant Communities and Education directorate budgets. 
4.3  The total income in 2022-23 from school meals was c. £151,000 for primary schools
and c. £788,000 for secondary schools. Writing off existing school meals debt presents
a risk whereby income budgets may reduce due to a perception that the Council is no

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longer managing school meals debt. There is no provision within the Council budget for
a loss or reduction of this income. 
Human Resources 
4.2 None. 
Legal 
4.3 The Council follows CIPFA and other guidance in relation to making financial provision
to fund debt which accrues through non-payment of school meals. 
Equality/Socio-economic 
4.4 North Ayrshire Council promotes equity and tackles inequalities and poverty as part of
its mission to be Fair for All. Current practice in relation to school meals debt exceeds
the COSLA Good Practice Principles and maintains supportive contact with those
families who are unable to pay for school meals. 
Climate Change and Carbon 
4.5 None. 
Key Priorities 
4.6 The content of this report aligns to the following priorities: 
• North Ayrshire’s vision that Children and young people experience the best start in
life; and
• North Ayrshire’s residents and communities enjoy good life-long health and wellbeing. 
Community Wealth Building 
4.7 None. 
5. Consultation 
5.1 A range of Council services has participated in the preparation of this report. Since the
report is the result of a Council motion, wider consultation has not been appropriate. 
Audrey Sutton
Executive Director (Communities and Education) 
For further information please contact Audrey Sutton, Executive Director, on 01294
324414. 
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