CATERed co-op to end school and community meal service
Their school service is due to run until the end of the academic year in July 2026 and the community meals service will stop at the end of February 2026
A company that serves school meals to thousands of children in Plymouth will stop operating next year because of financial pressures.
CATERed says rising costs and a lack of funding for free school meals means they will close their school meals service at the end of the academic year in July 2026, and their daily community meals service will end in February.
The company has been running for ten years and is jointly owned by Plymouth City Council and local schools, but leaders say it is no longer possible to break even.
Schools now have until the summer of next year to find a new provider for their meals, and the Council says support will be offered to community meal users to find alternatives.
It's a unique model, with the co-operative company priding itself on its work with local companies, growers, fishers and suppliers for the last decade, supporting the local and regional economy.
But, due to continually rising costs and the level of funding available for benefit-based free school meals (FSM) and Universal Infant Free School Meals (UIFSM), Plymouth City Council say simply that the sums simply no longer add up.
The shift in the educational landscape away from local authority-maintained schools to multi-academy trusts has further increased the financial challenges and the company is now projecting a substantial deficit for this year.
The City Council, which is a shareholder, has agreed to provide a support package to CATERed which means that the school meals service can continue until the end of this academic year.
The supply and provision of school meals (meeting mandatory School Food Standards) is a statutory service which falls to school Governing Bodies.
As such, member schools will now have time to find alternative providers – or decide to provide school meals themselves – before the next academic year.
It is anticipated that school-based CATERed staff will transfer into the school that they currently work in or to new providers.
'Hugely proud'
Brad Pearce, Managing Director of CATERed, said: “All of us at CATERed are hugely proud of what we have achieved together over the last 10 years. We have always been highly ambitious about raising standards of school meals provision and have strived to always provide high quality, appetising meals using fresh, seasonal, local and organic ingredients. We have been proud that what we do has been recognised nationally. We are equally proud of our relationship with all of our schools and academies.
“Sadly, the financial climate has been increasingly challenging in the last few years and with the additional costs we are now facing it is no longer possible to break even. I know that other providers across England are also ceasing services and closing.
“We have explored a number of options but without the Government recognising the true cost to provide the service through an index-linked, appropriate funding rate, or ongoing external financial support, it is not possible to continue.
“Schools can still benefit from the skills of our schools-based staff when they transfer into schools or to new providers.
“It is obviously a very difficult and tremendously sad time for the CATERed community, but we will continue to provide an excellent service until it is the time for schools, or new providers, to take over.”
'Difficult' news
Councillor Sally Cresswell, Cabinet Member for Education, Skills and Apprenticeships, said: “CATERed has provided an excellent service to schools, children and young people and their families so we understand how difficult this news has been for its staff and customers.
“Brad Pearce and his team have taken great pride in upping the game on school meals in Plymouth and making CATERed a leading light nationally by showing how high quality, home cooked meals can be provided using locally sourced ingredients wherever possible.
“We would all have liked to see that great work continue but unfortunately the increasingly challenging financial environment now makes that impossible.
“We know school headteachers and governing bodies will be sad to see CATERed’s school meal service end and will join us in thanking the team and paying tribute to all they have achieved.”
The Council also asked CATERed to provide community meals, which is a non-statutory service. For this service, the company provides these meals freshly prepared, hot delivered meals on a daily basis to around 150 adults each week, around half of whom also receive adult social care support from the Council.
The community meals service has needed an annual subsidy from the Council to break even, though CATERed has reduced the amount of subsidy required since it took on the service.
The Council has also had to review the subsidy in light of its duties under the Care Act 2014, under which meals are considered a daily living cost, and the Council’s ongoing budget pressures. It has now made a decision (subject to call in) that the subsidy will end on 28 February 2026.
CATERed is unable to continue providing the service without the subsidy and will be working with the Council to support community meals customers in finding alternative providers before the end of February.
'No longer sustainable'
Councillor Mary Aspinall, Cabinet member for Health and Adult Social Care, said: “We know that community meal users will miss the service provided by CATERed when it ends but unfortunately the economic climate and financial position of the Council means an ongoing subsidy of the size required is no longer sustainable.
“Neither service is ending immediately which means there is time for schools and community meals users to find alternative providers, but I would like to take this chance to thank CATERed for all they are doing and for what they have achieved over the years.”
Brad Pearce said: “We will be so sorry to say goodbye to our community meals customers at the end of February but, in the meantime, we will be working the Council to support them in finding alternatives ways to meet their needs.”