Government Overhauls School Lunch Programme, Saving $130 Million Annually

Associate Education Minister David Seymour announces a revamped school lunch programme, delivering nutritious meals to students at reduced costs by leveraging commercial expertise.

The New Zealand Government has announced significant changes to the school lunch programme, which will result in over $130 million in annual savings for taxpayers. Associate Education Minister David Seymour confirmed that by collaborating with businesses and utilizing government buying power, the programme has been transformed to deliver better results for students while cutting costs.

Leveraging Business Expertise

“We have embraced commercial expertise, used government buying power, and generated supply chain efficiencies that exceed the cost-saving targets outlined in Budget 2024,” said Seymour. The partnership includes companies such as Compass Group, Gilmours, and 17 food manufacturers and suppliers, enabling the government to secure lower meal costs while maintaining quality.

Under the revamped programme, the government will provide nutritious hot and cold meals for all participating students. Popular dishes such as butter chicken curry, chicken katsu, lasagne, chicken pasta salad, and wraps will be available at a cost of $3 per meal, compared to the previous cost of up to $8.68 under the former Labour-led government.

“Every student receiving a school lunch today will continue to do so from day one of Term 1 next year,” Seymour confirmed.

Standardized Meal Portions

All students in years 0 to 8 will receive a 240-gram meal, while older students will be provided with larger portions of at least 300 grams, including additional items such as fruit, yoghurt, or muesli bars. This change ensures that all age groups in the programme are treated equitably, with appropriate portion sizes for different age brackets.

Cost Savings and Impacts

“If the previous government had implemented the programme this way, over $800 million could have been saved over the past five years,” Seymour noted. However, he acknowledged that some suppliers involved in the original programme would be affected by the changes, expressing appreciation for their contributions and understanding the challenges they may face.

Despite the impact on some suppliers, the emphasis remains on providing students with good-quality meals at an affordable cost to taxpayers. Schools that follow the external model will continue receiving a variety of hot and cold meals delivered daily, while schools using the internal and iwi/hapū model will be able to access government-negotiated wholesale ingredients. These schools will see a slight funding increase to continue preparing meals on-site, ensuring they can employ staff to manage the programme.

Extension to Early Childhood Education

In a further development, the programme will also be expanded to provide meals to up to 10,000 children aged two to five years who attend low-equity, community-based early learning services. This extension will be funded by savings from the lunch programme.

An official announcement regarding the early childhood extension will be made soon, but Seymour emphasized that the government’s priority is ensuring a smooth transition for schools by Term 1, 2025.

Commitment from Commercial Partners

Seymour praised the collaborative effort between the government and its commercial partners, noting that all stakeholders are committed to making the programme work. “I have met with our commercial partners, and they are fully committed to delivering for the children and the schools. I’d like to thank the Expert Advisory Group, the Ministry of Education, affected schools, and suppliers for their hard work in making this fantastic solution possible,” Seymour said.

The overhaul of the school lunch programme marks a new era of government-business collaboration aimed at improving public services while ensuring cost-effectiveness for New Zealand taxpayers.