The post you are reporting:
From the Parliamentary debate on the subject
Nadhim Zahawi The Parliamentary Under-Secretary of State for Education
I have a lot to say. Forgive me—I will try to address some of the issues that hon. Members have brought up in the debate. I will make some headway and see where we are on time.
Based on those principles, the proposal we have consulted on is to introduce an earnings threshold for free school meals and the early years pupil premium of £7,400. That is equivalent, depending on a family’s exact circumstances, to an income of £18,000-£24,000, once benefits are taken into account. We will publish our response to the consultation shortly. I will briefly set out our thinking on the proposals in more detail.
Let me just set out the thinking, and then I will address some of the issues that colleagues raised.
First, to ensure our proposals do not result in any child losing out on a hot meal from one day to the next as a result of these changes, we propose to offer generous protections. We propose to protect the status of every child currently eligible for free school meals at the point at which the threshold is introduced, and every child who gains eligibility under the new arrangements during the roll-out of universal credit until the end of the roll-out. Following that period, we will protect all pupils who were protected and are still of school age until the end of their phase of education—for example, primary or secondary school.
Those protections will apply to those on universal credit and the legacy benefits that qualify a family for free school meals. We are not proposing to make any changes for those eligible for free school meals because they are in receipt of asylum support or pensions credits. Those households will therefore remain entitled to free school meals for a long as they retain those benefits.
Once roll-out of universal credit is complete, we will move to an earnings-based system, similar to the one introduced in Scotland. Any household earning below that earnings threshold and claiming universal credit will be entitled to claim free school meals for their children. We estimate that, as a result of the threshold, by 2022 about 50,000 more—not fewer—children will benefit from a free school meal, compared with the previous benefits system. That means we will be targeting our support more effectively towards low-income families and the most disadvantaged children.
It is only right that we set a threshold and do not allow every family on universal credit to be eligible. Let me explain why. As my hon. Friend Michelle Donelan said, some families can earn more than £40,000 a year and still receive a small amount of universal credit. I think that is a good thing, because it ensures that they are incentivised to continue to work. Although it is right that those families receive some universal credit, free school meals should continue, in my and many people’s opinion, to be targeted at the most disadvantaged families and those on much lower incomes.
Let me share this with hon. Members. If we do not set new criteria, the effect would be that about half of all school-age children would be eligible for free school meals. As my hon. Friend the Member for Brentwood and Ongar said, the additional cost would be £600 million for free school meals, or £6.2 billion if we include the pupil premium, which follows that. In contrast, about 14% of children are eligible for free school meals today. That would not be a good deal for the taxpayer, in my opinion, and nor would it be targeting public funding at those in the most need. We have to remember that we want to target money at the frontline of teaching in our schools.
The one issue I want to address, because it was picked up by many colleagues, is the cliff edge. First, universal credit removes the major cliff edges in the legacy system, such as 16 hours, so we are moving to a system that is better overall in that respect.
Secondly, the protections we outlined during the roll-out period will ensure that no child loses out on eligibility until after the end of universal credit roll-out. If their parents move over the income threshold, they will continue to be eligible. In the longer term, however, we need to set a threshold to ensure our support is targeted at those who need it most.
Let me pick up the point about the Labour manifesto, which Mike Kane mentioned. The Labour manifesto contained a commitment to free school meals for primary school pupils and said that it will be paid for by a VAT rise on private schools. That is illegal until we leave the European Union. Universal free school meals, which the hon. Gentleman is suggesting now, requires a much bigger number—up to £6.2 billion—so I would like to hear from Labour where that massive increase will come from. It must come from massive tax rises. I think I shall end there, Mr Hollobone.